Questions for Entrepreneurs with their own Contracting/Development Business

Questions for Entrepreneurs with their own Contracting/Development Business

Member since 2017 · 9 posts · 2 votes

I am at a bit of a crossroads. I am 4.5 yrs out of college and work with a telecom real estate fund and have always wanted to invest in real estate on my own. Although I enjoy the benefits of working for a company I am beginning to get tired of the corporate grind. I have flipped a few houses during covid and remote working times and was fortunate enough to grow up in a family of real estate investors and entrepreneurs which has provided me mentors and exposure to starting and operating a business.

I am thinking of starting my own construction/development company in a few years time and wanted to hear some opinions from people who have done it who are outside of my circle. The year I flipped homes was some of the most challenging, fulfilling, and genuinely fun time I have had working in my career so far. I also believe there will generally always be a demand for gc's/contractors in the long run and it is a real estate adjacent which would keep me "in the know" for off market deals and opportunities in my area. My big goal for my career if I pursued this would be to be developing commercial real estate projects and building a portfolio of my own real estate investments. 
 
With that being said, most of the people in my immediate network who are in the construction business say the most valuable skill is just being able to run a team and a job efficiently and if they could start over they would go the GC route. A few others have said a plumbing/electric/excavation company is the route they would go. Whatever direction I go, I would leave my current job and take a few years to learn the craft and business under someone else before breaking off on my own. 

Does anybody have any thoughts/suggestions? What direction would you take if you could start over? Would you bother getting experience working under someone else? 

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  • Henry ClarkPro Member
    Developer · Member since 2020 · 4k+ posts · 4k+ votes
    1y

    A few thoughts. Need to apply to your specific situation.

    1.  Recommend you keep your job till you hit critical mass.  Both from a financial and time standpoint.  Having a boring job is great if your pushing yourself on your GC.

    2.  Start small and make your big mistakes early.  You have to make mistakes to learn.  Be able to recover and grow.  Pick boring easy jobs to begin with.

    3.  Fail on paper first.  Build a checklist on paper.  Ask people to add to it.  Then learn about each area.  Do you know zoning and variances?  Storm ponds and storm sewers?  100s of others. 

    4.  Take the GC test.  Without studying.  Get a feel for the needs.

    5.  Cash management, bookkeeping, bidding, people, etc.  You might be a great electrician but you will lose your butt, plus lose enthusiasm when you find out the GC business is about other things.

    6.  Would not learn under someone else.  They won’t teach you the above.  Just start small.

    7.  Do you have the personality?  It’s about perseverance.  The world will be against you.  You have to learn it’s not personal.  Just hurdles to get over.  Solutions to be found.  

    8.  Decide in an area of expertise and where you have an unfair advantage. 

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