How I Became a Real Estate Development GP
Trust me, if I can do it. You can do it too.
Inviting Myself to the Table
When I was first starting out in real estate at Samuels & Associates in Boston, my boss told me, “To get a seat at the real estate development table, you’ve got to have a high level of expertise in one area of development. This can be design, construction, legal, or finance.”
He continued, “If you have that, then you can be a part of the conversation. Otherwise, there are too many people who want a seat, and no one is invited. You have to invite yourself.”
I worked there for two years. While there, I decided I wanted to build my own projects, no matter how small or big, and I wanted to start my own real estate development business.
So, how can you become a real estate development general partner (GP) using the path I chose?
Learn the business working for someone else. Find the best-in-class shop in town and find a way to get your foot in the door.
Offer your services free of charge. Look for properties with a strong balance sheet that are of value to potential investors/partners.
Look for properties that might work for a project. Then get the ones that do under contract (purchase and sale agreement).
Build relationships with potential teammates, partners, brokers, etc.
When a property is under agreement, get your partners to buy into your business plan for it.
That’s it! Maybe that overview sounds simple, but it’s not.
Mentorship Matters
As I was beginning my real estate entrepreneurship journey, I was fortunate to have breakfast with a successful housing developer, Larry Curtis, from Winn Companies.
He is a former attorney turned developer. During our meal, he told me his secret to success, which he learned from his father: “Try to meet one new person a day and look to build rapport and a relationship with them. Really get to know them through your meeting. Then you have an ally.”
He also suggested, “Go find a property, tie it up, and call me and other developers.”
After Larry made this suggestion, he could tell I was a bit confused and discouraged, so he told me his origin story.
When he first started, he tied up a piece of land and insisted on being a partner with one of the biggest developers in Boston. The developer balked, but he held firm. And with that, he talked his way into the deal. Now, twenty years later, he is the president of a successful development company and an industry leader in affordable housing development—both in Boston and across the U.S.
His story is compelling, but his advice is extremely intimidating to someone who doesn’t know how to “tie up” a piece of property. At the time, I also didn’t have a balance sheet, or proof of funds, required for a property of any significant size.
But I listened, thanked him for his time, and decided to stay in the game and keep looking for opportunities.
It All Comes Together
Twelve months later, I found a five-plus acre piece of property where the underwriting for a multifamily project worked.
And over that period of time I developed a prosperous relationship with a partner whose family had the balance sheet to tie it up. We had similar business interests and priorities and over time built trust doing smaller projects together.
Thereafter, I was in business as a real estate development GP. And I’m still here nine years later.
Let’s connect!
Let us know about your journey! I want to hear about it either in the comments or DM me on LinkedIn.
If you’re thinking about starting and unsure where to begin, reach out. I enjoy “coaching” people to get their businesses off the ground.
Who knows, maybe you’ll pitch me a deal, and we can work together as partners.
#FoxBusiness Conversation - Thank you to Madison Alworth of #Fox Business for our conversation about the economy and the New York Community Bancorp. It was featured on the Stuart Varney Show this past week. See the video below for a short clip of our conversation.
Links we are reading this week:
NY Times - New York Community Bank Trouble Brewing at Regional Banks
Thesis Driven - 2024 Where Real Estate Investors Are Heading
NY Times - Commercial Real Estate is in Trouble
Globe St - Florida Apartments Experience Unusual Revenue Drop
Announcement!
The Real Estate Tech Insider podcast, by John Pugh and Rachel Walters is now live. Our conversations focus on what technology and new innovations are driving developer’s returns today. Give us a listen on Apple, Stitcher, Spotify, or wherever you get your podcast fix. If you like what you hear, please give us a review!
From Halfcourt:
Around the basketball world the Top 25 in the men’s college ranks UConn sits at the top of the pack at #1. There were a ton of upsets this past week: Clemson upset UNC, Texas A&M knocked down University of Tennessee, and Texas Tech knocked off the Kansas Jayhawks.
There are mounting legal issues for the NCAA with teams creating unions, such as Dartmouth’s men’s team to antitrust arguments being made, and Fair Labor Standards being violated. There is a lot going on. Not sure I’ve seen this much heat on the NCAA ever.
In the NBA the Celtics sit atop the standings with an impressive 41-12 record. Victor Wembanyama had a very rare 10 block triple double game. He’s playing so well, it’s fun to watch. And the race is on for league MVP, will it be Jokovic again, maybe Embiid? Looking forward to seeing how things shake out this year with the playoffs no too far in the future.
Links of interest: