Developer
What is it?
According to LOE, the developer is the one who commissions the work to a technical designer and hires a builder to carry it out, either for personal use or for subsequent sale, rental, or any other form of transfer. Their role is crucial from the beginning of the project, as they define its basic features, coordinate the different participants, and provide the necessary financial resources for its development.
In the case of Urbanitae, developers are the strategic partners who lead each real estate project. These are companies with proven experience in the sector that resort to participatory financing to obtain capital from multiple private investors and thus complete the financial structure of their developments. This collaboration allows developers to execute more projects quickly, while investors gain access to investment opportunities with potential returns in the real estate market.
Key aspects to consider
When investing or collaborating with a developer, it is essential to consider their experience and reputation in the market, as the success of real estate projects largely depends on the developer’s ability to effectively manage associated risks, such as construction delays, fluctuations in material costs, or changes in market demand.
- Regulated figure: The developer is legally recognized as one of the building agents, with specific obligations regarding safety, quality, and compliance.
- Responsibilities: They must ensure that the project has all the licenses, that it is carried out in accordance with current regulations, and that the required insurance and guarantees are in place as mandated by law.
- Relationship with the investor: In participatory financing, the developer does not offer financial advice but presents an investment opportunity through a PSFP like Urbanitae.
- Shared risk: Although the developer usually contributes their own capital to the project, investors also assume a risk, so the developer’s solvency and experience are key factors when evaluating the opportunity.
- Transparency and control: On platforms like Urbanitae, projects and developers are thoroughly analyzed before being published, and they are subject to monitoring throughout the investment’s life.