Real Estate Developers vs. Investors What is the difference between a developer?

The real estate developer is the main unit of the relevant real estate, while the investor and developer are just the financial units behind the real estate developer.

When we buy a house, some people often confuse real estate developers with various concepts. This is understandable, after all, many people are not professionals in the real estate industry, and we don't need to know overly complicated technical terms in our lives. When buying a house, we only need to identify the real estate developer and the property, we can understand the real estate developer as the unit that is truly responsible for the property we are in, and the property company as the steward of our property.

The real estate developer is the main unit of the real estate.

When building a new property or community, almost all the information needs to be provided and reviewed by the real estate developer. Only after obtaining the corresponding filing materials can the real estate developer obtain the right to build the community. Because of this, the real estate developer is the main unit of the real estate, and at the same time, it is also responsible for the relevant industrial and commercial information.

Investors and developers are the investment units and capital units of real estate developers.

Because not all real estate developers have strong enough financial strength to build a new real estate, in the case of need of funds, investors will invest in real estate developers according to the quality of the project, and obtain a certain investment profit in this way. For developers, developers will take the initiative to contract the shops or apartments in the new development of the real estate developer and invest in these units. <>

The relationship between a real estate developer and the other two is generally one of investment and cooperation.

Although these three concepts are completely different, these three concepts are not the so-called subordinate relationship, but the relationship between investment and cooperation. For our owners, we only need to identify the real estate developer, and we do not need to know too much about the capital unit behind the real estate developer, nor do we need to directly connect with the investor and developer for various businesses. <>

The real estate developer is to use the sales, and then for the profit model, the main thing is to find the project to cut the land, and the investor is mainly to assess the project, think that there is potential to invest in the development, the developer is a long-term lease or investment income for the profit model.

Real estate developers are looking for land and building houses, investors are cooperating with developers and giving money, and developers are developing real estate projects and raising funds to build real estate companies.

The developer is responsible for the overall planning, construction and sales, from the beginning of the real estate planning to the sale. Investors are responsible for injecting capital to provide capital for real estate development. The developer is responsible for the overall planning, judging the risks and development plans for the property development.

An investor is a person who invests in a project, and a developer is a person who develops a project, and in most cases the relationship between the two is that of a partner. There are also self-invested and self-developed, which are called development investors.

1. The purpose is different.

Investors: Investors are businessmen who make investments, assess the project, and invest and develop it if they think there is investment potential, in order to return on it.

2. Different ways to make profits.

Investors are to evaluate the project, and only those who think that there is investment potential will invest in development, so as to obtain returns in it.

3. Flexibility is different.

The developer is a doer, there is a high debt, there is a liquidity risk, not only to have financing, project management, sales capabilities, but also to have the relationship of declaration and development procedures, a project from the decision to the completion of the may take several years, not easy to withdraw.

Investors are people who contribute capital and look at returns, and will be very objective and decisive to use real estate development as a tool to make money. When the market is sluggish, it will shrink or even "cut off", and do another project, which can be withdrawn in time.

The capital contribution (capital, land, etc.) is the investor, and the specific implementation of the development (organization and construction) of commercial housing is the developer. The transfer of land to the developer is direct development, but the owner is an agent construction project. Making profits is the common goal, and joint publicity is the means.

The investor is a shareholder, and in order to make the operation of the investment project (including the transfer of Huliang or partial transfer) and accounting more convenient, and in order to bear less legal responsibility, the investor will set up an independent developer with limited liability, and the developer is the specific operator. The quality of a project usually depends on the credibility and experience of the investor.

Developers and investors are usually the same company, but this is not necessarily the case. Developers are what we often call companies that build houses, while investors invest their money in the real estate industry, not necessarily to build houses, but may just buy some real estate properties to invest.

2. The investor is to assess the project, and if it is considered that there is investment potential, it will invest and develop in order to return on it.

Contact: 1. Real estate developers are generally what we call building houses, and investors only refer to investing funds in the real estate industry, not necessarily building houses, but may just buy some real estate properties to invest in buying houses, of course, it is related to real estate developers.

2. The special situation is that if an investor buys the property first and then resells it, that is, the second-hand house is sold, then the buyer who buys the second-hand house is related to the investor.

The difference between a developer, a developer, and an investor is that a developer is a real estate company responsible for the development and construction of real estate projects and financing construction, and is mainly responsible for real estate promotion and scale expansion; The developer is the first undertaker of a project, mainly responsible for finding the project, signing the land, going through the relevant procedures and building the real estate; An investor is a businessman who obtains a certain profit through production and business activities, and is mainly responsible for the assessment of the project stool and the investment and development.

Article 30 of the Law on the Administration of Urban Real Estate Real Estate A real estate development enterprise is an enterprise engaged in real estate development and operation for the purpose of making profits. The establishment of a real estate development enterprise shall meet the following conditions: (1) It has its own name and organizational structure; (2) Have a fixed place of business; (3) Have a registered capital that meets the requirements of the first grade; (4) Have sufficient professional and technical personnel; (5) Other conditions provided for by laws and administrative regulations.

To establish a real estate development enterprise, it shall apply to the administrative department for industry and commerce for establishment registration. Where the conditions provided for in this Law are met, the administrative department for industry and commerce shall register and issue a business license; Those who do not meet the requirements of this Law are not to be registered. The establishment of a limited liability company, a stock company, engaged in real estate development and operation, shall also implement the relevant provisions of the Company Law.