How Does Real Estate Work?
The real estate industry begins with the acquisition of raw land, municipal approvals, and construction. Once a property is entitled, it may be sold or operated until its value has stabilized, or it is at least 95% occupied. After stabilization, a property can be sold or purchased to regain its value. Real estate transactions involve attorneys, appraisers, financiers, and other external parties. Some of the major players in the industry are brokers, lenders, and asset managers. Construction of a…