Career Advice - Tech Sales to RE Development at age 32
I’m at an inflection point in my career and am needing some guidance and people to talk to. 

Everybody’s story is unique, but in short I have a BA in Architecture and now am currently in software tech sales and am a 32 yo for context.

I have an interest in RE development and investing, but not sure on how far I should go into it. More hands off - and just invest into the space, or more hands on and start a career in the space?

I’m in a career now where I can make very good money, but that’s not all im chasing. Baseline enjoyment in my job is something im seeking and the tangible quality of creating a structure that will provide jobs, housing, and opportunity is something that seems very rewarding on many different levels. I still have the Architecture itch in me, but am no means a trained designer outside of schooling.

How realistic is it to be able to switch careers into RE Development and make a baseline of $100k/yr income?

My job in tech sales is highly demanding and stressful, so my free time is spent de-stressing, which doesn’t leave much time to learn a new skill set.

Would it be advisable to make an abrupt switch into development? What are some of the harsh realities I’m not seeing as an outsider looking in?

Thanks for everyone’s input in this sub.
[{"id": "itgv9lz", "text": "I have a unique perspective on this\n\nWorked in commercial real estate development, operations, worked in RE investment banking, and worked in tech sales.\n\nReal estate is the one of the most network driven industries out there and there are few (if any) rotational or training programs out there to learn about RE. It\u2019s an industry dominated by experience  by either local expertise or by product type\n\nRE has way more small shops than large ones and they all pull in people with experience or people fresh out of college (and we\u2019re talking about like 1 or 2 people every few years). Even large companies will have incoming classes of only like 30 across the country\n\nThose are the realities. Now how can you break in?  Do you have any part of your story that ties you to commercial RE? Like are you selling any kind of prop technology? Are you selling something used by the data center industry which sits in between RE and tech? You could try to leverage that in your interviews but you\u2019re going to have to go to RE conferences and get after it\n\nIf you want something more structured/guarantee, you could go after one of those master of real estate programs at Cornell, NYU or another top RE school. It\u2019s not guaranteed at all but makes your story actually make sense, gives you formal training, gives you the opportunity to get a summer internship and real world experience, which you can use to get a return offer if you kill it.\n\nIn terms of salary, you would probably come in at a high analyst (or an associate if you come from a masters program) so I think $100k is realistic. Developers usually get really paid on promote but you are probably not getting any of that until you prove yourself\n\nAlso you should really look what developers do because designing anything is going to be a smaller part of your overall job. It\u2019s a mix of business development to get deal flow, raising capital, financial modeling of costs and rent or sales price, getting a mix of arch/MEP/structural engineering in line for a vision, drawing reviews, project management, cashflow management, potentially leasing (depending how small the shop is). General contractor is going to actually build the thing\n\nIf you\u2019re going to pivot, you\u2019re going to take a pay cut and you\u2019re running out of time imo. My recommendation is if you\u2019re serious go get your masters of RE now unless you have very good industry connections or are rich and be a strong LP to an existing development", "replies": [{"id": "ithsx8i", "text": "I agree with your comments. \n\nDue to rising interest rates, jumping 100% into commercial real estate development is not recommended. Construction costs are high, lowering highest and best use profit.", "replies": [], "depth": 2}, {"id": "itlikta", "text": "Thanks for the thorough response. Super good insight. I think that is a lot of potential sunken opportunity costs and pivoting time that I could spend doubling down on my career now and taking those earnings to invest in a JV deal or something similar.\n\nI\u2019m someone whose curious about everything and wants to do it all, but there is a time reality to each profession that I gloss over. \n\nThanks for helping me get more clear.", "replies": [], "depth": 2}], "depth": 1}, {"id": "itgx01d", "text": "I started investing in RE right after college in 2009 - specifically tax lien investing. I worked for a public housing authority for a couple years in the meantime, went to grad school for urban planning and re-started my investment and development career in 2016.\n\nIn 2016, I started consulting for a construction company, and eventually started rehabbing vacant and abandoned properties that I was able to acquire cheaply through VAB tax lien foreclosure. In 2019, started working to assemble a project, eventually acquiring 5 lots, and working with the City to acquire another 5 lots. We\u2019re in redevelopment for 60+/- units at that site. This year also, I was able to acquire another .5 acres and we\u2019re going to sub-divide and acquire an additional .25 acres for a 75-80 unit project on that site.\n\n\u201cHey!\u201d You say, \u201cthat\u2019s awesome, you are killing it, that\u2019s amazing!\u201d \n\nI am currently over-drawn on 2 of my 4 accounts, and recently ha to write a personal check to my business to cover credit card payments and rent. I also got sued from a woman who pretended to fall down stairs for money (her lawyer admitted she just wanted insurance money). My 75-80 unit project is the victim of mortgage fraud - I\u2019m getting sued from a woman who had previously invested in this property, and thought that she could swoop in after we cleared the mortgage via short sale and submit a deed in 2022 she claims was from 2019 (she admitted to the judge during the court hearing that she just wanted a free house). The upside: If I can get through these 2 projects, I\u2019ll own a percentage of 150 units +/- and can potentially retire before 40.\n\nRE Development is incredibly hard, especially if you have no help or guidance. It also encompass a lot of different areas, and you\u2019ll have to figure out what, where, how, and what type of product you want to develop. It sounds like you have a nice and stable career in a field where you can learn and make some good money. If you wanted to pivot into development, I would say dip your toe in first, buy a property, do a JV partnership where you can learn the ropes from someone who has done it. Take classes, read books, learn to model a project, pro Forma, and deal structures. Learn what areas you want to invest in - residential, commercial, businesses, etc. Do a 2-family new construction build, or start small.\n\nI\u2019m 35, doing a bunch of larger things, but I\u2019m continuously stressed, and working to make ends meet. I\u2019m lucky I have a great and supporting partner who financially has a greater role in our expenses, but understands that one day I\u2019ll be able to take care of her and the lifestyle we want. I don\u2019t have much guidance, so I equate my work as figuring out a direction, chopping down trees, and paving the path. It\u2019s rewarding, but extremely difficult. I\u2019d choose it again, but I\u2019d do it completely differently next time.\n\nCan answer questions if you like, and I hope this was somewhat helpful.", "replies": [{"id": "itjyq43", "text": "Would be interested in what you'd do differently. I've been in the field for a while and looking to go off on my own in the next couple years. How much would you recommend to have saved to do this?", "replies": [], "depth": 2}, {"id": "itlj809", "text": "This is the response I need, thank you very much.\n\nDoubling down on my career now and taking the profits to do a JV deal or something similar sounds more logical than making a shift, especially since I have very few connections in the RE space.\n\nWishing you the best of luck on your deals, and hope you get to retire by 40. Sounds like a great goal.", "replies": [], "depth": 2}], "depth": 1}]