So, why do so many lawyers become real estate developers? Is it because they’re smarter than their fellow lawyers? Or are they more ambitious? Let’s explore these questions and find out. This article focuses on the latter. This career choice is not for the faint of heart. Besides, lawyers don’t necessarily need to be highly educated to make a killing in RE. They can make the transition by putting their legal background to good use.
The real estate industry is a highly litigious field. With so much money on the line, lawyers often find themselves involved in fierce litigation. That’s not surprising considering that real estate involves legal jargon and high stakes for all parties. In addition, many real estate developers have extensive experience in working with attorneys to get their properties ready. So, it’s no surprise that so many attorneys end up in real estate development.
As a developer, you’ll need to secure funding. This might come from your own pocket, or you could find investors outside of your professional network. In either case, you’ll need to create a legal structure, including an LLC or corporation, to protect your personal assets and avoid lawsuits. Also, you’ll need to designate a registered agent for your real estate business to reduce the hassle of handling the legal process.
While many small firms are better able to handle large transactions, most real estate developers are still wary of placing all of their legal needs in one firm. They’re better off retaining the services of a firm with a deep bench and a diverse team of lawyers. While boutique firms are good for large transactions, they’re not ideal for smaller, midsized deals. Ultimately, it’s up to you to choose what works best for you and your business.
