Is this a hazing ritual that I'm just not getting?

Question

Odd subject, but I am stumped, and could use some insider deciphering.

I'm shifting my career into hands-on property development in Seattle area. I'm looking to join a small property development team that specializes in distressed multi-units. From my AEC + operations background, I know I can help uncover the mismanagement, analyze books, bring economies of scale, etc.

BUT when I reach out to property developers, the only response I get back is "Bring me a great deal and then we'll talk".

Why is this? Is this how I get a seat at the table, Wall-Street style?

To me, it doesn't make sense that an operations person would have to prove themselves by finding an off-market gem. If I was getting into wholesale, that makes complete sense. I know I need to prove myself (and am excited to), but not understanding this challenge. Is this how one proves they are serious?

Thanks!

Scott Mac · Answer

Hi Nic,

I think you are looking for a piece of a deal, but I'm not sure.

Such as:

Partnering...I'm looking to partner up with someone to (flip) or (buy and hold) or (etc) distressed multi-units here in (Seattle) or (etc). I bring to the table the ability to help uncover the mismanagement, analyze books, bring economies of scale, etc.). I'm looking for a piece of the deal in return for my efforts.Does this seem like something you might be interest in?

Working for...I'm looking to work for someone to (flip) or (buy and hold) or (etc) distressed multi-units here in (Seattle) or (etc). I bring to the table the ability to help uncover the mismanagement, analyze books, bring economies of scale, etc.). Does this seem like something you might be interest in? My pay rate would be $X.

If Mr. Luxury Yacht says bring me a deal and we can talk about it....he most likely means a piece of the deal...in return for being a finder and for your efforts ongoing during the deal and ownership. (Luxury Yacht because Seattle has some nice boats in the sound and etc..).

If you are looking for employment...that's different.

Good Luck!

Nic Werner · Answer

Thanks for the thoughts Jeffrey. We got far enough for me to explain my background, skills, and Why my shift. So it may have just been the brushoff. I also have a voice in the back of my head that they may not want to expose their playbook to someone. This is an industry of trust, and I am an unknown......

Nic Werner · Answer

@Scott Mac I think you nailed it. While I didn't write out my full pitch here, I can definitely be clearer with a property developer - and you've written just the template.

VERY helpful response, thank you!

And for completeness, this is Door #2: I *am* looking to work for someone as a way to learn the ropes. Down the road it would be more of a partnership as I get more immersed and have more to bring to the table. For now I'll take any scut work to get the exposure. I previously founded an automated building-code compliance startup, so no shyness around the thorny stuff :)

And I appreciate everyones helpful (and patient) responses - getting normalized into a new industry really helps with support like this.

David M. · Answer

@Nic Werner

I'm mostly sure I understand your predicament.  I guess, are you looking at "medium to large" developers?  From my point of view, many of these "developers" are really barely small businesses.  Of course, unless you are talking about an actual major company with staff/employees in which case my post here is moot...

The comment you referenced makes sense to me when its a smaller developer.  They probably don't really have an office staff.  So, unless you bring a deal to the table, there is no reason for you to be involved.

For example, there are/were lots of comments in BP for new investors to team with a seasoned one.  The new investor is always saying they can run around, do this, do that, etc..  Well, this is investing, not a job, so I don't need an employee, much less a freebie one.  I can do it myself.

So, I think developers are the same way.  They are used to running their own projects and making their money off the profit, not the salary..

I hope that helps.  Good luck.

Evan Polaski · Answer

@Nic Werner, I am having trouble deciphering what you mean.  You are either looking to be an acquisition associate or an asset manager.  Typically, small operations do not have the financial wherewithal to carry this overhead and the principals handle these roles.  But you can find these roles at larger organizations.

Shawn M. · Answer

@Nic Werner

I’m a small property developer and it’s just me. I hire my consultants and contractors as necessary, I wouldn’t have room to hire an assistant like your proposing.  You might be better looking at larger development companies that employ lots of staff. However like others have said if you had a deal that we could partner together on there might be a way to have a mutually beneficial partnership.

Curious about how you automate building code compliance? Do you have AI that scans the drawing files for errors?  Seems like a very complicated system to bring to market.

Max T. · Answer

It sounds like they don't value the skillset that you offer to bring, probably because they are already good at that same skillset. As another posted above, they are managers. They are already doing what you say you will help them with.

Jeffrey Donis · Answer

Gotcha- yeah it really depends on the person you are talking to I guess. As most things in RE, it is a numbers game so I would just reach out to more people eventually you will find someone interested in what you have to offer.

Nic Werner · Answer

Oh, definitely not that! :) I'm using that term in the sense of opportunities: properties that have not been managed well.

Dana Whicker · Answer

I hope you are not opening with the word "mismanagement" in your pitch. A property developer is primarily a manager. That is their area of expertise over and above anything else.

Is this a hazing ritual that I'm just not getting?

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