Are people who flip houses...?

Question

...in a way, also real estate developers?

Answer 1

No, they're more like speculators. They buy a rundown house, fix it up (sometimes slapdash crappy, but just so it LOOKS nice and passes inspections), and then they "flip it' for twice what they paid for it and put into it.

I call them the used car salesmen of real estate.

Answer 2

While real estate developers are broadly defined - generally when one mentions real estate developer in the context of the residential market they are referencing someone who actually creates new housing stock - whether it be in the form of condominiums or single family residences. Developers undertake a much wider range of responsibility than a flipper would generally need to worry about. For instance, a flipper would not need to worry about securing new entitlements from a municipality, whereas for a developer this is one of the most challenging concerns. Additionally, the range of contractor and subcontractor relationships a developer must have is much more demanding.

Answer 3

More like geniuses... They take the new "American Way" and make a profit out of it. Most people want a house that's ready to move into and they'll pay $300 a month extra for it (for 30 years, which is around 30k)... Nevermind buying the original house that needs carpet and paint that may cost 3k total, they want to move their furniture RIGHT IN... So as a house flipper I don't mind taking people's money... Everyone is happy.

Answer 4

Real estate developer is such a loosely defined term, I don't see why they couldn't be.

Answer 5

The first respondent is pretty harsh. My remodels are top notch. A property won't sell for more than it's worth.