Herin are a number of ways your magic item might come into being, apart from something you order from your local wizard.
A standard roleplaying environment: the tavern. This is another easy one to create in your own home, providing you have a large enough group of roleplaying friends. Let us assume your PC group is no larger than five, and that the rest of your friends can be NPCs. Let us also aim for an exceptionally seedy and unscrupulous city tavern.
In a good LARP it is desirable to separate the players out individually at some stage, because they are more suggestible and afraid when they are alone. Some form of individual challenge is probably the best way of doing this. One possible setting for this is a cave system, and it is probably one of the easiest to recreate realistically, and one of the most perfect for playing on fears of claustrophobia and darkness.
To become a warrior in a tribe. -no food, drink, or sleep for 4 days and nights. -change into special clothes and painted enter hut -slices of skin carved from their chest and shoulders -wooden skewers through the bleeding flesh behind the chest muscles -stout thongs, secured to rafters were tied to skewers -hoisted from floor by these and weights were attached to their feet -twirled around till fell unconscious -when recovered from this, given a hatchet to cut off their little finger -ropes then tied to wrists and force to run in circle like a horse until he passed out -if survive all this he can return to his family in honor knowing he is now a warrior.