© 2023 by Intellectual Property Group ACN 601 263 638

The 2 types of developers.

By Peter Micalos

These days everyone is a property developer.

The attractive returns, promises of financial freedom and the flamboyant lifestyle are all louring factors for people wanting to enter the industry.

There are basically two types:

 - Commercial Property Developers

 - Private Wealth Managers

Both types are good and have their advantages and disadvantages.

COMMERCIAL PROPERTY DEVELOPERS

 - Tend to be more aggressive

 - Are looking for "year on year" returns

 - Have a degree of corporate infrastructure

 - Actively manage risk

 - Typically adopt a "Trading Stock" sell down retail model

 - Product is safe and reliable

 - Have a sophisticated capital stack

PRIVATE WEALTH MANAGERS

 - Play a longer term game

 - Generally have a stronger balance sheet

 - Are more passive

 - Outsources more

 - Hold and retain stock more

 - Use less leverage

 - Smaller team

 - Less overheads

So what is a better model ?

A blend of both is very powerful.

  • Instagram
linked IN.png
black smoke P - clear background.png