How much money do Commercial Real Estate Developers REALLY make? | Real Estate for Noobs 29

There’s a pretty standard framework on how commercial real estate developers make money, and if you understand it well, it can help you determine if it makes sense to go on your own, or stick to your job and save up more money. I’ll go over the revenue sources, which are basically fees and deal profits, then break down typical expenses, and whatever’s leftover is profit.

0:00 Intro
0:39 Market Standard Fees
3:41 GP Promote
5:25 Operating Expenses
6:21 Net Profits or Losses

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#realestatefornoobs #realestatedevelopment #commercialrealestate

[pablonarez]

Derek, I just want to say thank you for starting up this YouTube channel when you did. I started my own development/GC firm last year and sometimes I rewatch your videos because of how informative they are. Also thank you for mentioning the subtle Asian real estate Facebook group, it’s exposed me to some awesome people!

[niahvitadreams]

This brings many things into the light

[kristopherchung]

I actually was drinking some wonton soup while watching this Hahaah..I know the deal you outlined here assumes that there is a GP and LP’s in this deal but if you’re pursuing an affordable development deal where the government is involved via tax credits etc. i’m guessing this could change the payment structure a bit?