What Is the Difference Between a Construction Manager and a Real Estate Developer?

A real estate developer is typically well-educated and well-trained, with a formal education in real estate finance and an MBA, as well as certification from a relevant real estate organization. Individual education and training requirements vary, but some degrees include courses in environmental remediation, public policy, and urban planning and architecture. Internships and industry contacts are common ways for a developer to gain experience.

A builder is someone who actually constructs houses. They may outsource mechanical details, but they are generally in charge of every aspect of the construction process. A developer, on the other hand, works on multiple housing units at once, finishing the overall framework, which includes power lines, streets, sewers, and other necessary infrastructure. A builder, on the other hand, creates a home from the ground up, beginning with the design and construction.

While the life of a real estate developer can be glamorous, it also necessitates extensive training and education. A vacant plot of land can be transformed into a luxury boutique apartment complex or a high-rise office building by a real estate developer. They manage construction and renovation projects and typically sell the finished products. The distinction between a real estate developer and a builder is much more subtle than it appears.

A real estate developer is a party to a construction project, whereas a builder invests their own money. A builder will typically use commercial loans to fund the project, but the majority of the funding will come from investors such as real estate investment trusts, family offices, and pension funds. A developer may renovate an existing building in addition to constructing a new one.