What Do Land Developers Get Paid?
Land developers locate and purchase real estate property, increase its value and sell the result to others. Many developers are self-employed; others work as salaried employees of home builders, property development companies and commercial real estate companies.
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Salaried Employees
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A land developer employed by a home building or other real estate company receives a salary based on experience and what part of the development process forms his job description. In May 2009, according to the Bureau of Labor Statistics, the median salary for the occupation grouping that includes land developers was $48,460.
Self-Employed Land Developers
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Self-employed land developers get paid according to the scope and success of their projects. During the development process, they might pay themselves a monthly salary that is included in the bridge financing they arrange. When the project is completed and sold and all bills are paid, any amount left is profit that the developer has earned.
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Considerations
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Market conditions, the length of time from initial purchase to final sale, and the cost of financing and construction impact land developers and the companies hiring them; their income can fluctuate from millions to zero. One way to mitigate such ups and downs is to retain ownership of a commercial or multi-family property development and receive rental income from its tenants.
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References
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- Photo Credit new home construction image by Jim Parkin from Fotolia.com
