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Real estate developer vs investor

The differences between real estate developers and investors can be seen in a few details. Each job has different responsibilities and duties. While it typically takes 4-6 years to become a real estate developer, becoming an investor takes usually requires 2-4 years. Additionally, a real estate developer has an average salary of $93,510, which is higher than the $88,055 average annual salary of an investor.

The top three skills for a real estate developer include financial statements, property management and due diligence. The most important skills for an investor are financial statements, IR, and press releases.

Real estate developer vs investor overview

Real Estate DeveloperInvestor
Yearly salary$93,510$88,055
Hourly rate$44.96$42.33
Growth rate3%8%
Number of jobs87,8658,409
Job satisfaction--
Most common degreeBachelor's Degree, 71%Bachelor's Degree, 72%
Average age4842
Years of experience64

What does a real estate developer do?

A real estate developer obtains and develops land, turning it into a real estate asset. Part of their job is to conduct extensive research and analyses, coordinate with experts, gather and analyze data, negotiate with land sellers, and prepare properties for development. They also oversee construction operations from planning to execution, set budgets and guidelines, establish timelines and objectives, generate leads for potential clients, and maintain an active communication line with contractors for a smooth and efficient workflow.

What does an investor do?

An investor is a person who decides to put on their money into a particular bank, company, or institution without assuring the return of that investment. Often, investors spend their money on education, business, or even retirement. Some people also invest in mutual funds, stock exchanges, real estate, or stocks in a corporation.

Real estate developer vs investor salary

Real estate developers and investors have different pay scales, as shown below.

Real Estate DeveloperInvestor
Average salary$93,510$88,055
Salary rangeBetween $66,000 And $131,000Between $36,000 And $214,000
Highest paying CityCatonsville, MDWashington, DC
Highest paying stateConnecticutAlaska
Best paying companyRSM USGoldman Sachs
Best paying industryMedia-

Differences between real estate developer and investor education

There are a few differences between a real estate developer and an investor in terms of educational background:

Real Estate DeveloperInvestor
Most common degreeBachelor's Degree, 71%Bachelor's Degree, 72%
Most common majorBusinessBusiness
Most common collegeUniversity of Southern CaliforniaNorthwestern University

Real estate developer vs investor demographics

Here are the differences between real estate developers' and investors' demographics:

Real Estate DeveloperInvestor
Average age4842
Gender ratioMale, 66.9% Female, 33.1%Male, 61.9% Female, 38.1%
Race ratioBlack or African American, 9.1% Unknown, 4.2% Hispanic or Latino, 17.0% Asian, 5.4% White, 63.8% American Indian and Alaska Native, 0.6%Black or African American, 10.0% Unknown, 5.1% Hispanic or Latino, 11.9% Asian, 5.3% White, 67.1% American Indian and Alaska Native, 0.6%
LGBT Percentage12%12%

Differences between real estate developer and investor duties and responsibilities

Real estate developer example responsibilities.

  • Manage segment's treasury function including equity forecasting and investment requests as well as lender relations in a difficult banking environment.
  • Convert FTTH's accounting to QuickBooks
  • Install windows, doors and put on metal roof.
  • Remodel entire building, add bathroom, and double glaze windows for views of mountains.
  • Assist in the preparation of GAAP, statutory, management, and other financial reporting on monthly and quarterly basis.
  • Conduct semi-annual asset valuations and pro-forma analyses using ARGUS and self-developed models.
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Investor example responsibilities.

  • Manage $250K portfolio with exposure to commodities, futures, and equities.
  • Manage a grand opening, create business website and Facebook marketing, implement marketing campaigns and sales events.
  • Manage nation-wide CRM application between technical teams and business departments.
  • Manage commercial and multifamily REO portfolio preparing property operating plans to enhance value and marketability of REO asset
  • Prepare and review necessary reconciliations to ensure assets balance and agree to FNMA actual/actual and schedule/actual reports.
  • Procure replacement instruments regarding lose securities.
  • Show more

Real estate developer vs investor skills

Common real estate developer skills
  • Financial Statements, 14%
  • Property Management, 10%
  • Due Diligence, 8%
  • General Contractors, 7%
  • Payroll, 4%
  • Real Estate Development, 4%
Common investor skills
  • Financial Statements, 9%
  • IR, 8%
  • Press Releases, 7%
  • Investment Community, 5%
  • Real Estate, 5%
  • Reconciliations, 4%

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