Monday, 23 January 2012

Real Estate and Developers Whereabouts

This is all about real estate & developers for those people who don't know anything about real estate & developers and want to
  • know all about real estate & real estate developers
  • be master in real estate & real estate development in short time
  • know all the basic concepts & fundamentals of real estate in simple words & meanings
  • learn from start to finish
The simplest meaning about Real Estate is Land. And, Land can be the following
  • Agricultural land - land used for farming
  • Plot - empty piece of land ,approved by concerned authority, on which a house or houses, a residential buildings, commercial buildings like offices, malls, shops, colleges, hospitals, schools etc can be built or constructed or developed
  • Developed land - land on which a house or houses, a residential buildings, commercial buildings like offices, malls, shops, colleges, hospitals, schools etc are already built or constructed or developed
  • Raw or rough land - land far from city or town, completely uncivilised. This type of land is chosen to develop like townships, small cities etc. You can also call it as Undeveloped land.
Remember, in this world of real estate Land is called Property.

Many people might understand that Real Estate & Real Estate Developers are same. But, they are wrong. There is a difference between Real Estate & Real Estate Developers. Now, you have come to know about Real Estate, in simple words, as discussed above.

Let see what is  Real Estate Developer

Real Estate Developer, in simple words, one who develops land. & this phenomena is called Real Estate Development.  And, the difference between Real Estate & Real Esate Developer is that Real Estate Developer or Real Estate Development is the part of Real Esate.

Since, Real Estate Developer is one who develops land. To develop land you need two things
  • Money or capital
  • Builder or Building Contractor
Money is needed because nothing is free. This is the place from where investors come in. Investors are those people or organisations that give money to tackle expenses financially or you can say invest money so that can earn more money on profit basis. Investors can be financial organisations like banks.

Builder or Building Contractor is one or an organisation who does construction work, simple.

So, from above, you can say that there are two kinds of Real Estate Developer
  • Investors
  • Builders
There are two basic cases in the Real Estate Development discussed below

Case 1: Investors want to buy land & they can provide all the money for the construction but do not know the construction work so they hire builder(s) or constructor(s) on contract and such builder(s) or constructor(s) is/are called Building Contractor(s).
In simple words
  • all money is provided by the Investor or Investors
  • Building Contractor is hired for the whole construction work only

Case 2: Building organisation or Construction organisation so called builder or constructor has the money but not sufficient that is still needed some money to buy land  & do the construction so they go for partnership with Investors to cover & complete the whole project financially.
In simple words
  • Money is provided partly by the Investor & partly by the Builder on partnership basis
  • Builder is responsible for the whole construction
By comparing above cases you can get simple idea about the difference between Builder & Building Contractor

Now you people might have known what is Real Estate about simply, difference between Real Estate & Real Estate Developer, difference between Builder & Building Contractor

Lets summarize the above two cases & generate the difference between Builder & Building Contractor as following
  • Building Contractor is a Constructor who is hired on contract to do the construction. And, hiring is done through Estimation & Tendering.
  • Builder is a Constructor who invests money & does the construction work also
  • Building contractor does not invests & only does the construction
  • Builder invests & also does the constuction
Real Estate Developers are also known as Property Developers or Property Builders

Real Estate involves the following activities
  • Buying or Purchasing Land (Investors are needed).
  • Selling Land (Marketing, Sales & Advertisement)
  • Developing Land (Real Estate Development concept)
  • Buying or Purchasing Developed Land (Investors are needed)
  • Selling Developed Land (Marketing, Sales & Advertisement)
  • Renting or Leasing  Developed Land (Marketing & Advertisement).
  • Managing Land (Developed & Undeveloped)  which is called Property Management.
  • Mantaining Land (Developed & Undeveloped) so called Property Mantainance.
  • Loans like home loans to buy land or home like mortgage.

I hope that some basics & fundamentals may have cleared.

Above all data is about basic concept that can be related to simplify consfusions & complexions .

Note: Realty means Real Estate + Property.
And, in real estate Land is called Property.

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