What is Real Estate Development?

I am not one to reinvent the wheel so I decided to repost from a blog I follow.

http://brandondonnelly.com/post/72865187758/what-real-estate-developers-do-and-why-i-became

 

Brandon explains it in the best way I ever heard…

“Real estate developers are effectively the entrepreneur that make a new building happen. They go out and buy the land, they put a team in place (architect, engineers and so on), they get the necessary approvals to build (with the help of the team of course), they finance the deal, and then they get a builder to actually construct the project.

Developers are like an orchestra conductor. They don’t play any instruments, they just direct the performance.

But at the same time, developers assume 100% of the risk of the project. If the building fails (because you can’t sell the condo units or lease out the space), that all falls on the developer (and his/her investors). All of the other team members are getting paid based on the services they provide. They’re consultants.”

Sometimes Developers do get into some of the instrument playing but no reason to confuse it here any…

 

Make sure you check out Brandon’s Blog – Architect This City.  He talks about some really cool stuff.