October 19, 2013
Modern media, real estate gurus, home study courses and professionally produced workshops seem to mix and interchange some fairly common roles within the real estate investing arena. It is important to speak the same language so the parties involved can communicate effectively, especially if you work in this exciting field. I chose to write this article to clarify these titles and their meaning.
- Developer – company responsible for the overall operation of a real estate deal. This includes the acquisition, funding, renovation project management and eventual occupancy if it is to be a rental or the sale of the property if it is to be sold.
- Investor or Lender – the person or group putting up the majority of the money to fund a project. This could be a bank, mortgage company, private individual or even a group of private individuals.
- Builder – any construction company or person performing the activities on the ground, this would be the general contractor if one is used and all of the construction trades.
- Realtor – trained, credentialed professional, adept at representing buyers, sellers and facilitating the purchase transaction itself. This official title carries a certain amount of respect.
- Title and Escrow Company – this is a very specialized service company with the legal authority to develop deeds, titles, mortgages, promissory notes and oversee the purchase transactions related to the buying and selling of real estate. In some states, this role is performed by an attorney specializing in real estate transactions.
- Trustee – as it relates to real estate foreclosures; the Trustee has the legal authority to oversee and administer auctions, forcibly transfer real property deeds under the state foreclosure and debt collections rules, regulations and laws.
- Seller – the deed owner of a property wishing to sell or forced to sell in a foreclosure.
- Retail Buyer – a buyer of real estate intending on occupying or directly using the property.
- Wholesale Buyer - a buyer of real estate NOT intending on occupying or directly using the property. A good example here would be the developer intending to buy, renovate and sell a property.
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