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Old Posted Apr 11, 2011, 10:00 PM
Nowhereman1280 Nowhereman1280 is offline
Join Date: Sep 2006
Location: Pungent Onion, Illinois
Posts: 8,492
ChiTown, your outline above is pretty much correct, though a 203 (k) loan is only available to first time home buyers who want to purchase a property and renovate it for themselves. Most developers leverage other properties they already own, use hard money loans, or use a personal guarantee to get a start on their careers.

I was able to use an FHA loan to get a start on what I'm doing because I haven't bought a home before and could get slightly lower interest rates with an FHA loan since the government assumes the risk.

Originally Posted by ChiTownCity View Post
Is a Project Development Manager and a Real Estate Developer any different? If so, what are their differences?

Also is it possible to be a commercial and a resedential developer at the same time?
A project manager generally takes on single projects and is often employed by a contractor or a developer to manage individual projects. The role is, however, very similar to what a developer does and many developers get their starts managing projects for other developers. I occasionally act as a project manager at my day job which has helped me build skills and contacts necessary to accomplish larger projects than those I am working on now.

There are developers that do commercial, residential, and even industrial projects all at the same time, however they tend to be extremely large developers. Most developers pick one niche and stick to it so as they get extremely good at that specific market.

PS: I really need to get around to posting picks of my current project. It's a three flat (frame, not brick unfortunately) that I've been rehabbing and I've already got two of the floors finished and rented out, more than covering my costs, the third floor (which needs a lot more work) will be gravy at this point. I think I'll be holding on to this property because I've got a long term loan at 4.8% and have $1,100 a month in expenses and will be getting about $1,800 in revenue.
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