Post
by Anonymous User » Sun Apr 17, 2011 1:47 pm
I'm at law school.
I want to go into real estate.
I'm finishing up my second year and taking courses with an eye towards real estate transactions and development. I seriously think law school is a decent investment for this track. You'll learn about all kinds of crap that you could learn from being in the business - but it would take years of experience to get the feel for and you would make lots of mistakes in the process. Aside from your basic 1L courses and any classes on real estate transactions/finance and land development (obviously you want to take all of those), take business associations, secured transactions, something related to environmental law, and anything else that appears related that is offered at your school. Skip all the litigation centric classes, you want to put your effort into learning about contracts and transactions. Be mercenary and think to yourself in class "how is this going to help me with a RE transaction/investment." Your professors will be talking in terms of "here is what will help your client / here is what your client wants as buyer or seller and here is how to set that up and make it happen" - all you have to do is internalize that it is what you want. You can be the legal service provider, or you can be the user of legal services that you already have the general knowledge and feel for (yeah I know, duh... but I think lots of law students don't think that way because they've decided they want to be lawyers, or have to be lawyers because they are investing in law school).
You'll learn all kinds of useful stuff that should be factored in when considering a parcel for development or investment - how to avoid environmental liabilities, zoning issues, choice of corporate entity to maximize your investment and limit your liability, advantages of tax free sales, stuff to be wary of in contracts of all types: both development wise AND finance wise. And all kinds of other stuff. Maybe most importantly, this neurotic "think like a lawyer" concept combined with what you learn in your legal practice class, will give you tools for FINDING OUT stuff you are worried about or think could be harmful, without having to rely on another attorney and paying the associated fees. You'll feel more confident when you negotiate or think about an investment because the little black box of uncertainty for how someone might screw you by dumping their toxic land or trying to bamboozle you with boilerplate will be something that you can manage and figure out on your own. Instead of working your way up from the ground floor and not knowing anything but what you get exposure to as a fresh face - after 3 years of law school (and some relevant internships) you'll have a significant knowledge base immediately useful to the industry to draw on to do due diligence, make smart informed decisions about what to invest in, and be able to give reasons to persuade and convince other people in a negotiation about anything related to a transaction or development. If you do law school right, you'll come out and be able to talk the talk, instead of looking like some fresh faced kid straight out of undergrad who doesn't have a clue about any of the factors at play, and who wants to learn things on the job. Obviously while you are still in your 20s, that will give you a huge leg up on being entrepreneurial, or convincing someone to take a chance on hiring you.
You will also double your employability because you can always still do law right out of law school (Yeah, I said it... ALWAYS.). I don't know where you live, but around my area and the neighboring states, there are lots of real estate boutique lawfirms catering to developers and brokers. A fair amount of these were started by former RE biglaw guys who could make more with less overhead while bringing their former clients with them. A lot of these are going to be less than 10 or 5 attorney offices and would be considered small law, but as lousy as the economy and RE market is right now, transactions are still happening and developers, brokers, and investors are looking to cut costs and go with someone cheaper for anything they want reviewed or worked on by an attorney. Even if the pay isn't as good starting, you have the potential for making all kinds of great contacts by going this route, and maybe switching over or being entrepreneurial later.
Be proactive in law school, keep in mind what your goal is, think critically about the utility of everything you learn to your goal. Going to law school for the purpose of doing RE development or investment is unusual and you probably won't be able to compare your circumstances and what you are striving for to most of the other law students who are stressing about journals, moot court, biglaw/OCI interviews. Don't be passive with course selection and the investment will have significant payoffs over your career. My 2 cents.