Major Real Estate Development Risk management and Insurance from the Research Paper - 1

Major Real Estate Development Risk management and Insurance from the developers position - Research Paper Example I will also look at the insurance factors that affect a real estate developer’s position. Various literatures offer a different understanding of the concept of real estate development with some looking at it as being similar to property development, while others looking at them differently. Basically, real estate development refers to a process that makes it possible for land use to be intensified for the purpose of coming up with housing structures for occupation. Real estate is also looked at as a concept that makes it possible for construction and necessary access of infrastructure, and at the same time allows legal subdivision of property for the purpose of vertical construction. Real estate itself is looked at as a projection that takes in the aspect of money, space and time. Through real estate, creation and management of time and space is enabled with the aim of generating specific estimated cash flows over a particular period of time. A developer refers to and individual or a corporate organization that develops land and buildings to increase their value to specified amounts over time. Developers in the real estate industry are therefore individuals or organizations who bring together land, labor and capital and plan how to manage and facilitate the market in a way that the requirements of the users are sufficiently met. In addition to this basic definition, the real estate industry is characterized by various types of developers who may be classified on the basis of their strategic capital role, geographic scope and ownership structure or the type of products they deal with (Davis 89). Real estate developers may therefore be classified in three most common categories: trader developer refers to the type of a developer who assumes the entire risk of the project until it’s completed. A trader developer then makes a complete sale of the land and property which results to the main goals as being exploitation of