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Fouye Real Estate > Information about Real Estate > More Real Estate Resouces The real estate developer is the person who takes a parcel of land and divides it into lots.
The real estate developer builds the roads and all the other improvements besides the construction of houses or biuldings in the developed lots.
There are basically two types of real estate developers:
- Land Developers
- Building Developers
Land developers
Land developers typically acquire raw land (real property with no improvements or infrastructure) and improve it with utility connections, roads, earth grading, covenants, and entitlements.
Infrastructure improvement provides a base for further development of built improvements. Covenants define the context in which future development of built improvements may take place (often in the form of deed restrictions on particular parcels: a sort of "private zoning code" limited only to those properties).
Entitlements are secured legal permissions from regulatory bodies (typically in the form of permits, but sometimes in the form of re-zoning or planned unit developments). Once these improvements have been made to the raw land, it is typically subdivided and sold piecemeal at a profit to building developers or individuals.
Building developers
Building developers acquire raw land, improved land, and/or redevelopable property in order to construct building projects.
The buildings are then sold entirely or in part to others (usually for a significant profit), or retained as assets to produce cash flow via rents and other means.
Some building developers have their own internal departments for designing and constructing buildings (more common among smaller developers), while others subcontract these parts of the work to third parties (typical of larger developers).
These definitions were found on Wikipedia
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