Real Estate Developer

By:   Date: 26 December 2009

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Real estate developer is an individual or a corporation whose job is to add value to an already existing real asset or property. A real estate developer is also known as property developer. The job of a real estate developer is a risky business as the payment occurs in the form of a commission only if the deal is closed. One's destiny is in his own hands. Completing a transaction is a time-taking affair consuming about four to six months thus asking for a huge tenaciousness of the real estate developer.

Types of Real Estate Developer:

Land Developer- This type of real estate developer acquires land without any infrastructural development and work on it to provide the required basic amenities using roads, covenants etc. This infrastructure improvement inputs the crucial links for further development. The developed land is then sold out to individuals or building developers at a price higher than that before the amelioration.

Building Developer- This is the variety of real estate developers, which first acquire the land improved by land developers and then construct building projects on it. Building developers also add value to redeveloped projects. The work can be carried out using one's own specialized workers or using third party developers.

Real estate developments require a huge initial investment. So real estate developers use debt leverage to overcome financing problems. Higher debt increases the possibility of larger monetary profit but along with that exposes the real estate developers to vast risks. A higher debt also asks for a higher aggregate repayment.

A real estate developer can earn a six-figure salary after working in the field for about five years. The compensation of developers depend not on experience but on the market situation.

Some of the eminent real estate developers are: DLF Universal, Donald Trump, Olympia and York, Sun Hung Kai Properties etc.


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