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Question:

i have a few questions about real estate?

what is a real estate developer and is a real estate developer thesame thing as a real estate investor and if there are not the same thing than who normally makes more money in a more normal economy.then my number two question is what is the difference betweena real estate holding company and a real estate development company?

Answer:

a person or company who buy or option land for the purpose of rezoning, improving, planning, financing and building real estate product with the intention of making a profit is a developer. A real estate investor could be the above entity if they opted to retain in their portfolio the above product. Also, a real estate investor could be one who buys finished product which is leased on a long-term or semi-long-term basis, looking for both a return on cash and a return on investment (which anticipates debt-service, depreciation, management, etc.) A real estate holding company purchases leased investments, sometimes manages them and parcels out ownership interests similar to a mutual fund. The development company was first explained above. Each make a lot of money, but the developer takes the most risk, subject to the vagaries of the market, and vacancies.

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