REM 500- Final Exam Guide - Comprehensive Notes for the exam ( 56 pages long!)

• School: Ryerson University
• Department: Real Estate Management
• Course: REM 500
• Professor: Cynthia Holmes

Document Summary

Is the process of improving land parcels to create buildings, communities and cities: includes constructing new buildings, servicing raw land and renovating existing buildings. The developer manages the process required to convert ideas on paper into tangible properties and then into money. A real estate investor, in contrast, typically manages and trades buildings already in operation. For housing, condo and land development projects the developer recoups his investment and take his profit through the sale of units. For rental properties the developer often sells the project once it is full leased up. Or sometimes the same developer shifts roles to become the real estate investor/owner of the completed project. Development is considered the highest risk and highest return area of real estate. Risk factor impact bottom-line financial returns, and also reputation and credit worthiness. Returns comes when project is completed and sold. Developers also achieve non-financial goals (aesthetic, community-building, reputation)