How to break into real estate development

**Ctash** · 06-01-2009 03:20 PM

I have seen various threads posted about real estate and so forth, but nothing along the lines development. Whenever I see a vacant building or empty piece of land, I imagine the possibilities of what it could be turned into. Any advice or comments on how to get into real estate development would be appreciated.

**JohnGalt** · 06-01-2009 05:22 PM

Development requires imagination, skill, and most of all capital to invest. You might want to see about a job or internship with a small developer in your area. I say a small developer because you will probably be more likely to get better hands on experience and see all the aspects of the job. Gaining experience and knowledge in the field would be the best place to start.

Best of luck

**Will** · 06-02-2009 01:35 AM

Very good advice from JohnGalt.

The thing is about development is that you need big money - or the access to big money (bank finance etc) to do it. Also, without experience you may not understand the full costs of a development project. One big factor is also that you cannot just build anything anywhere, all land is zoned a certain way that some can only have residential, some only retail and some industrial etc in keeping with the local government's town planning (it can cost a lot of money just to even apply to have land re-zoned).

I am studying Urban Development at university as I like development too, and even when I finish my 4 year course I will be a long way from being experienced. If you really like development, maybe take a course on it to see what it is all about? It's very interesting, there is so much to know but that's what I like about it - its a real skill to pick good development opportunities.

Good luck

**Gaulkin** · 06-02-2009 10:25 AM

That is not true, u can rezone property for little money and make big gains doing so. Dont let people tell you that you need huge amounts of money to start in development because that is false.

**Ctash** · 06-02-2009 03:58 PM

Architecture is a passion of mine and together with the business degree I am pursuing, real estate development makes sense to me as a career. I have self taught myself several rendering programs, and I am becoming sufficient in CAD. Vision and creativity are not problems, capital and opportunity are the key problems. Sure an idea may seem viable, however once a feasibility analysis is conducted the project will not generate income, or slightly loose money. The project could be as simple as subdividing a lot, retail space, or as complex as a condominium project, it does not matter to me as long as people and the environment benefit. I have worked with a developer here and there on some condo renderings, however nothing became of it. Do you think a rendering portfolio would keep me secure a internship or possible job working with a developer?

**mikek** · 06-02-2009 07:18 PM

acess to big loans in these times will be tough.
working for a small developer is key.

i met this one entrepreneur that started developing an empty piece of land that had old train tracks for factory shipments running through it. he to get it rezoned and almost came out negative. now he owns a online wine retailing business that supplies los vegas hotels and he is very successful

very encouraging storey!!

**DavinSov** · 06-02-2009 07:44 PM

Ctash,

Approaching RE Developement with/without your OWN money will depend on the project and the demographics of the location. My motto, "find the project, and there should be investors who's comfortable with the particular deal you're looking at." However, you have to do your homework.

Davin.

**Will** · 06-03-2009 08:06 AM

Originally Posted by DavinSov

Ctash,

Approaching RE Developement with/without your OWN money will depend on the project and the demographics of the location. My motto, "find the project, and there should be investors who's comfortable with the particular deal you're looking at." However, you have to do your homework.

Davin.

Developers actually try to use as little of their own or their partner's money as possible, as it is very risky to use your own hard earned money! Most developers aim for 80+% borrowed money for any development activity.

In the good times before the recession, a lot of developers were being approved for 100% financed developments, nowadays it is VERY hard to get loans, even for 80% funding of a very feasible development.

Anyone can develop property, you just have to know your stuff, if you don't know your stuff, you will not know how to spend your money, or who to get to help you, and people will very easily take your lack of experience as a chance to grab your money.

**Deal_Maker** · 06-03-2009 09:26 AM

Be careful which advice you listen to on this thread. Assuming you already have the education part covered, start networking. You need to meet other developers, investors, bankers, attorneys, etc.

**Gator** · 02-08-2011 05:15 AM

Originally Posted by Gaulkin

That is not true, u can rezone property for little money and make big gains doing so. Dont let people tell you that you need huge amounts of money to start in development because that is false.

how do you do that?