How a Real Estate Company Works


The Real Estate industry encompasses the buying, selling, and renting of land,

buildings, or housing. It also includes the development of land and the improvement

of property through changes in location, improvements, or the addition of natural

resources such as plants, minerals, or water.


There are many types of real estate companies, including brokerages, property

management firms, and developers. Brokerages employ real estate agents (realtors)

who help individuals and companies buy or sell homes. They may work a part-time

or full-time basis and earn a commission on each sale or purchase. Read more


Property management firms help real estate owners rent out units in their building

to tenants, such as apartments or townhomes. They collect rent, show units to

prospective tenants, make repairs, and handle tenant issues. They charge a fee,

usually a percentage of the monthly rent, to property owners.


Real estate developers often create new properties by purchasing land, adding

value to it by constructing or renovating buildings, and then selling or leasing the

finished product. They can make large profits by developing residential or

commercial properties in a desirable location, such as by adding better schools,

shopping centers, or playgrounds. They can also make substantial profits by flipping

houses or rehabbing properties.


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