May 17, 2010

Private developers part 2

Private developers who invest in real estate have typically four options:
  1. Invest additional monies and then rent
  2. Invest additional monies and then sell
  3. Hold and pay the carrying costs
  4. Sell right away
Sometimes you make money.  Sometimes you lose money. Sometimes you don't know if you made or lost money.   Another word for it is called "business".  

1 comment:

Anonymous said...

CDCs also generally have four options:
1. invest nothing and rent to Section 8
2. Invest nothing and then sell taking back door developer fees
3. Hold and apply for federal funds to pay the carrying costs
4. Sell right away to District Councilor or other family member.
You always make money, sometimes you make more money than you thought possible. Another word for it is "status quo"