Career Transition from Construction to Development
Currently working as PM in commercial construction building mostly hospitality things (stores, hotels and etc). Would like to go level up and become owner of construction projects. Given that I know all ins and outs of construction, what knowledge and work experience do I need to start building my own malls and hotels?
[{"id": "eudorf1", "text": "Financial. \nRaising funds,\nFinancial Projections,\nGAAP", "replies": [], "depth": 1}, {"id": "eudrdx4", "text": "The ability to convince other people to lend you the money to build these things. An eye for site selection.  Ability to read the tea leaves wrt demand and economic conditions a few years out.", "replies": [], "depth": 1}, {"id": "eudsvfn", "text": "Most developers have strong ties to local government and know their way around city hall. They also know the local market and the players in that market. \n\nKnow who the developers are in your area, get them to know you. Find out who owns the land you want to develop and what would entice them to let you develop it rather than the next guy. \n\nContruction managers are like plumbers, you pay them to get something done and it is bid on price and reputation. \n\nDevelopment is very much a relationship business in that you bring the elements together. See about working as in house PM management for a developer if you are looking at a career change. You get to be the one writing checks instead of the one trying to get the work.", "replies": [{"id": "eue1yyv", "text": "Find a good developer hiring PMs. \nNetwork with Developers at work if you have the opportunity, many hire people they know, maybe a good pm they have worked for before. \nBuild a fantastic resume/cover and send it to the best developers in the area, most won\u2019t post adds online.", "replies": [], "depth": 2}], "depth": 1}, {"id": "eue2tvw", "text": "Are you interested in working for a PM firm. If so shoot me a PM and resume. We focus on hospitality.", "replies": [], "depth": 1}, {"id": "euefp69", "text": "This answers required quite a bit of information but you have the experience to do it. If you\u2019d like to contact me by message and leave an email I can properly address your questions. \n\nJust one question from me, where is the geographic location of the area/market that your looking to start this?", "replies": [], "depth": 1}, {"id": "eueki14", "text": "Being a financier, I run into this scenario almost daily. I won't go into the various business side aspects such as dealing with permitting, sites selection, etc, however most people in this position don't realize the substantial cash contributions and net worth/liquidity requirements to get construction financing today. If you can manage to contribute 25% of the total cost in cash and have a net worth similar to the loan amount and about 10% in liquidity outside of the project, I would say you shouldn't have a problem getting financing if it's a strong project and you have assembled a strong team.", "replies": [], "depth": 1}, {"id": "eug2i84", "text": "You should probably also team up with a market expert, possibly an experienced appraiser, to really analyze the market and give you an unbiased opinion on the expected demand for the type of product you would like to develop. You don't want to build something hoping they come and than you are sitting with a vacant building or it takes a long time for the space to be absorbed in the market.", "replies": [], "depth": 1}]