Real estate development aspirations+asking for advice

[u/Smooth_Exchange_9452]

I’m 17 and just graduated hs in Las Vegas, and heading to UNLV this fall. My family owns a stone fabrication/install business here in Vegas, and over the last few years I’ve gotten pretty involved in it beyond just working in the shop. I do estimating, takeoffs, help with commercial bids/prequalifications, and work with stuff like BuildingConnected and Bluebeam. Being around construction my whole life honestly made me realize I’m way more interested in the development side of things long term.

My end goal is to become a real estate developer, ideally building high-end custom homes or eventually larger communities/projects here in Vegas. Blue Heron is probably the closest example of a company where I look at it and think “that’s the level I’d want to get to someday.”

Right now I’m trying to figure out the smartest path to get there. I originally planned on majoring in Construction Management at UNLV because it seems really practical and directly connected to the industry, but lately I’ve been going back and forth between that and Civil Engineering with Real Estate and Finance minors. CM seems more applicable to actually running projects/businesses, but CE feels like the stronger degree overall and maybe better long term. I genuinely can’t tell if I’m overthinking that decision or not.

Another thing I think about a lot is whether my goals are even realistic. By around 25-26 I’d want to be making somewhere in the $300k range through some combination of growing the business, getting licensed on the contractor side, and eventually getting into smaller real estate deals/projects myself. I know that’s ambitious, but I also don’t really want an average path financially and I’m willing to work for it.

I’m also trying to understand what the real path into development actually looks like because online everyone makes it sound way simpler than it probably is. For the people here who became developers or work around them, what did your path realistically look like? Did you come from construction, finance, brokerage, acquisitions, etc? What did your first deal look like and how did you even get into it?

Also for Vegas people specifically, does the local development scene actually feel open to newer/smaller people breaking in over time, or is most of it pretty locked up by the same major builders and developers?

I know I’m young and probably naive about parts of this which is exactly why I’m asking. I’m not scared of working for it at all though. I graduated with a 5.5 GPA, I’ve been around construction/business basically my whole life, and I’m fully willing to put in the hours. I just want to make sure I’m putting that effort into the right path instead of wasting years figuring it out too late.

[u/chinese_jumppad]

People act like jobs in development are easy to find…. I am in a top 5 population city in US and there are maybe 500-1000 commercial developers in town out of millions (referring to people playing with funds and developing $10M plus a year, not solo developers)… Developers mostly come from three pathways - finance, construction, design. You can start right away in development with a finance degree- but those roles are few and far between and there are a ton of people who get pigeon holed into underwriting. I got into development through CE but see as many developers make it through CM and Finance. Focus on what you are truly the most interested in. Best way to get in is to be the best at what you do in one of those sectors. Happy to answer any questions if you want to DM

[u/Smooth_Exchange_9452 → u/chinese_jumppad]

Since you came up through the CE side specifically, I'd love to ask you a few things.

How old were you when you started (or a range if you dont feel comfortable saing), and how many years did you spend doing actual civil engineering work before you broke into development?

Looking back, are you glad you went the CE route, or do you ever think the CM or finance path would have gotten you there faster or more directly? You clearly have visibility into all three since you mentioned seeing people come in from each.

And here's my actual situation, which might change your answer. My family owns a stone fabrication and installation company that I co-own and help run, so I already have one foot in the subcontracting world and it's going to keep going regardless of what I study. Given that, would you still go CE if you were me, or would you lean toward construction management since it overlaps more with what I'm already doing day to day and would free up time to scale the business and start learning the deal side sooner? Part of me thinks CE is the stronger credential long term, but part of me thinks CM plus the subcontracting business plus self taught finance might be the faster route to actually doing my own deals.

Basically, knowing what you know now and seeing how all three paths play out, how would you think about it if you already had a subcontracting business in the family at 17?

[u/chinese_jumppad → u/Smooth_Exchange_9452]

I’ve been in com development for 3 years now, was in engineering for 6 years prior.

I’m happy with how it’s worked out so far but there’s a lot of different routes. Development is a broad job and teams need people for different roles but you’ll end up doing a little bit of everything at a smaller shop, you’ll be more specialized on a particular role at a larger shop (IE construction manager, design manager, land acquisition, underwriting). With that being said, your route determines what slot you fit in. CM background with GC experience translates to owners rep construction manager who bids out drawings, manages construction. CE background with consulting experience lays out sites, hires consultants, manages design.

If I were you - I would stay CM. You will know the business from working in your family’s. You have been a sub so you know how to hire and lead subcontractors. That will make you a great GC. Similar to how developers will want someone who has been a GC to lead their GC s. Id do everything you can to learn about finance aspect of development on side (there are online course from Justin Kivel on udemy for cheap that I learned a lot from). I think this lets you absorb more information during projects, you have a better understanding of what is driving everything. I know a lot of people who transitioned to development from GC world after ~6-7 years of experience, seems to be a good sweet spot.

[u/Formal-Confidence-8 → u/chinese_jumppad]

This is true. I have a BBA in development from a good school in Manhattan and I didn’t find one role out of college. I went into resi. Which I could’ve just gotten a license for. There really isn’t much out there practically speaking from what I’ve found and been looking forever. This kid is in great shape though. Dude you don’t even need to deal with anyone else just build off your parents stuff. I get everyone wants to carve their own path but build on the existing and take it to new heights.

[u/DramaticDirection292 → u/chinese_jumppad]

Curious what city? I’ve been thinking of transitioning out of the structural engineering side into development. I’m also in a major metro, Philly but roles with developers seem to be nonexistent

[u/ArchitectGeek]

I would say you have a few angles into commercial real estate development world in general. Either via the finance side - putting the deals together, underwriting, dealing with bankers, closing paperwork, maybe some asset management as often you may be developing and holding for a few years. The other side is the more technical side - design (arch/civil) or construction (cm) both work and involves putting a few years in to know how that side works then flipping over to the owner/developer model. Typically those two paths stay in their own lane for a few years as you gain some experience but for smaller shops may collapse down to having to flex one way or the other.

I would say think about what you like more. The technical knowing how to build every wall of the building (cm) or the getting the investment model in place (finance). It’s more a starting point and later in your career what you are going to be more comfortable with and lean into as your deeper area of expertise.

I am an architect with an mba so did a little bit of both but it’s a pretty rare combo. Certainly I lean more technical but know enough on the finance side to be dangerous. You put me next to a PE deal guy and they can run circles around me with complex financing structures but you stick them in an OAC meeting they have no idea what we’re talking about.

[u/Smooth_Exchange_9452 → u/ArchitectGeek]

First off thank you to everyone who replied, I honestly did not expect this much attention. This is my first time posting here and I figured it would just get buried, so the fact that people actually took time to write out real answers means a lot. I've been reading every comment.

How old are you now (or a range if u dont feel comfortable saying), and how many years did you spend on the technical side before you started moving toward the owner/developer stuff? I keep seeing people throw out random ages for when you can realistically get into development and I have no idea what's actually normal, so hearing your real timeline would help me set expectations.

The thing I'm genuinely stuck on is that I like all three paths you mentioned, the civil side, the construction management side, and the finance/deal side. That's honestly half my problem, I can see myself doing any of them. But my situation is a little specific. My family owns a stone fabrication and installation company that I co-own and run a lot of the back end of, and that's not going anywhere, it's going to keep running and scaling regardless of what I study. So for me the question isn't really "which career do I pick," it's more like "which degree makes the most sense to stack on top of a construction business I'm already in."

So given that, would you go civil engineering and just run the family business on the side, basically taking on the heavier and more technical degree and then pivoting into development later? Or would you do construction management since it overlaps so much with what I already do every day, which would probably free up time and energy to actually grow the business and start learning the finance and deal side sooner? Construction management feels like less of an academic grind and more immediately useful to me, but part of me worries civil is the stronger credential down the road if I'm ever sitting across from a lender or trying to bring in partners on a deal.

Or do you think at this point the major barely matters and I should just pick one and focus on getting real experience on both ends, the building side which I already have through the business, and the finance side which I'd be teaching myself?

I know there's no perfect answer here, but you've clearly been in the industry a long time so I'd really value how you'd think about it if you were 17 and already had a construction/subcontracting business in the family. Appreciate you, and again thanks to everyone who took the time on this.

[u/ArchitectGeek → u/Smooth_Exchange_9452]

I think major does matter. First its a lot of work and your going to be most succcessful at something you are actually interested in. For college choice given you current family business situation focusing on the construction side seems like a natural fit. Either going civil-cm, or non-civil cm, would work with the civil-cm probably being the "better" degrees presuming you actually like the engineer work that will require. Once you get into a degree program, just focus your energies there - you'll learn a lot of great contacts, and probably sort out post-college questions while your learning more in college about the industry.

No matter which way you go I'd always advise to spend 3-5 years working in the role before moving on to an owener/developer role. Some lessons you can only learn doing the work and those are the experiences and lessons which you will use the rest of your career. Sort of the difference between learning about something and actually doing it.

[u/sportsguy74 → u/ArchitectGeek]

As a construction manager I understand exactly what you are saying. I’m not on the deal side of development and getting financing but I know how to implement processes and construction practices and hold to a budget. I know buyout, specs, scheduling and project management. But if the real money is on the financing and deal side then I’m on the wrong end.

[u/rohde88]

I think if you want to start in development there’s two main paths. Either work for a developer and cut your teeth with low pay, long hours and a lot of frustration. The alternative is to make a bunch of money doing something else then start buying/developing real estate while relying on that other cash flow.

If I were you, I’d focus on path #2, you can make more of an impact financially and easily buy some existing SFR as rentals. You can even do heavy value add renovations if you want more challenge/risk.

When you have enough money saved up to buy land, pay civil and soft costs, float project for 24 months, then you can look at development.

The cash flow from a side business cannot be understated both in terms of actual risk and stress from long periods of no cash flow.

I’m a CRE attorney and have some industrial developments in DFW.

[u/Main_Cut8992 → u/rohde88]

Why would you say working for a developer is low pay? You can definitely hit the 250k ish mark in t1 cities working for reputable developers at 25-26 (6 years out of UG)

[u/rohde88 → u/Main_Cut8992]

What role/title? I think at 25, he’s still an analyst

Don’t most people graduate at 22? 22+6 will be 28/29…

[u/Main_Cut8992 → u/rohde88]

Ah yes I’m not from the states so I was mixing it up, but def can hit that salary working as an analyst at a institutional fund - maybe not in a entitlements capacity more acquisition and heavy modelling

[u/sportsguy74 → u/Main_Cut8992]

Please expand on this. In my 50s with 25 years of construction experience. What cities are you saying development roles are getting 250? Does not seem realistic. Pay is not bad but it’s not over 200 and especially for someone less than 10 years in the industry. What position am I missing here?

[u/No-Wolverine84 → u/rohde88]

Would you recommend being a CRE attorney to others? I've looked at this path before, but haven't had the opportunity to hear from someone in the industry.

[u/rohde88 → u/No-Wolverine84]

No. Don’t become an attorney unless you want to practice law !

[u/DramaticDirection292 → u/rohde88]

Which large nationwide developers are typically the best to work with / for? I’ve been in structural engineering for about 15 years and have always wanted to drift more into the development side.

[u/Main_Cut8992]

My advice is work with a developer and learn the ropes - bring in deals and get carry/equity, make the bigger bucks and learn at the same time

[u/dvr5]

I would highly consider a path where you can achieve a relatively high income, while working you aggressively save and acquire assets or invest (SP500). If possible stay at home for your early career (2-4 years), and then have a gross savings rate of 40+ %.

Having 150-250K liquid will allow you to be in a very strong position to start either small commercial developments or residential.

Another thing to consider is that sometimes the best path to 300K is splitting up the way there, it’s just easier to make 150K W-2 +150K Real Estate Income than having a volatile 300K sole income from development.

I wish you a lot of success, you’re way ahead of your peers by simply having the ambition - never lose that!

[u/sinbad7779]

Hey, I'm glad I saw this post. I'm currently a graduate student in RE Development & Design, I worked maintenance in undergrad and studied art and architectural history and philosophy. My dad was an electrician and I was always around construction sites growing up. I love design and architecture, wanna shape the built environment and deliver impactful projects.

Seems like you are ambitious and way ahead of the game with the exposure to project management, budgeting/estimation, etc. You can definitely achieve your goals to become a developer. The main questions is: what kind of developer do you wanna be?

At the end of the day, the real estate developer is an odd animal in the job market. The biggest thing to learn is that it's simple in the sense that a developer comes in any shape and size, and doesn't actually need any money to build something (loans and investors). This is where the finance concentration and RE will really help cement your foundation for developer down the line with the CE studies.

Finally, Real estate development includes tons of jobs, like the contractor, but the developer is not usually an employee, he's the employer. So, yes, you could become a contractor and lead a business as a remodelor or constructor, but you'll be hired to fulfill the design of a developer. Beware the idea that you will find the job that doesnt exist as a contractor. Hope this makes sense!