Real estate is so profitable, why is the developer s debt so high, and where does the money go?

Real estate is indeed a very profitable industry, generally there will be 20% 30% of the profit, of which 10% is interest, because the developer's own funds are almost 0, and then the cost of sales is about 10%, and the new real estate to do some advertising to give commissions, some real estate will also invite some stars to help, and then the last 10% of the profit is probably in the inventory, mainly land inventory or projects for sale.

Because developers are investing money in other projects, they are heavily in debt.

Because the developer's money is used to build the house, their debt is very high, and they can generally only wait for the house to be sold.

The developer's money-making model is: mortgage the land to the bank, get a loan from the bank, and then use these loans to build a building**, sell the house and then return the funds, and finally repay the money to the bank. The only way for developers to quickly recoup their own property is to rent it out with a mortgage, that is, they will press the house to you and you will give you about the same amount of money.

Then you can stay for a long time.

The main way to make money in the real estate industry is, of course, to sell houses, and for every house sold, part of the capital income can be returned, and when all of them are sold, it is a considerable income.

There are two ways to make money in real estate, one is the speculation of land, and the other is the speculation of property prices. Either one is very profitable.

Hello Real estate is all about making money through the points of commission they earn from selling houses, generally the more you sell your house, the more money he earns.

How does real estate make money? I think real estate is definitely building a house to come, and then what? The profit among them is very large, super big profit, of course, this is how they make money.

Working in real estate, learning more about real estate-related policies, easy to grasp investment opportunities, you can buy high-quality real estate, or encounter better investment real estate, so many people prefer to work in real estate.

Doing this is really profitable, the premise is that you can really do a good job in real estate, and the commission in this is really high, but if you are not very good at marketing, then you will not be able to make money.

Yes. If you can sell your house, you can make a lot of money, but it's not an easy job.

Because these bosses who do the project will advance the money into the project in advance when the project starts, and only after the project is over, the house can only get the money after the house is qualified.

In fact, the reason for this is that the industry needs to invest a lot of money, and the return of funds is relatively slow, and the capital chain is also very tight.

The real estate developer's money should be borrowed from the bank, and the money of the boss who does the project cannot be settled immediately.

The boss borrowed 500 million yuan from the bank by mortgaging the project. x0d x0a three, start to build the --- structure capped, at this time the total cost of 600 million yuan, what should I do? The law stipulates that the house can be pre-sold if the structure is capped, and at this time, the sales center began to be busy, and the income from the pre-sold building was 1 billion yuan.

Do you understand.

The answer to this question depends on many factors, such as the investor's risk appetite, as well as the region where the investment is made, the form of investment, and so on.

In the most ideal case, if investors can find suitable real estate development projects and get higher returns at a lower cost, an investment of 100 million yuan can earn a high return, and the income can reach 20 to 30 percent, or even higher.

However, there is also the possibility of losses and investors may suffer losses if the real estate project in which the investor invests does not meet the expected objectives, or if the cost of the real estate development project in which the investor invests exceeds expectations. Therefore, investors must do their homework and research carefully before investing in real estate development projects to ensure the safety and viability of the investment.

1 Exact numbers cannot be determined depending on many factors, such as geographic location, market demand, development costs, etc.

2 A 100 million real estate development project may require a lot of capital and human resources, such as the purchase of land, construction, decoration, sales, etc., and the cost will increase accordingly.

3 If the market demand is strong and the project is managed properly, it may bring considerable profits; However, if the market is sluggish or the project management is not well managed, it may face the risk of losing money or even going bankrupt.

As a result, the profitability of real estate development projects is complex and volatile.