Archive for June, 2015

Real estate development involves purchasing real estate property, improving it, and then selling it at a profit. The people who are engaged in the business of real estate are entrepreneurs, professionals who specialize in buying, improving and selling properties. It can be a risky business, but when it’s done right can have a very high payoff for its investors, which is one of the main reasons why it has always attracted investors.

Successful real estate developers don’t just happen: those who do well have usually educated themselves, and earned degrees in business, finance, administration, or a related field. They have also gotten practical experience in the industry by working for a real estate company, and ideally will have learned the business from the ground up.

Since real estate presents a high financial risk, developers usually form business entities that provide them with liability protection. It means higher fees and more accounting issues than a sole proprietorship or simple partnership would involve, but the personal costs would be so high should there be a downturn in the real estate market, it is worth it.

Real estate developers usually build relationships with construction professionals, and gain additional experience by working with professional contractors on new buildings, or on renovations to existing ones. Developers sometimes break into real estate development by working first on residential properties, but that is not a necessity. Commercial real estate deals in larger cash values and hold great potential for making money.

Michael Yanko is a successful real estate developer in New York, with more than seventeen years of experience. He is the CEO of WY Management, a New York real estate development company.