A tax specialist or financial counselor can provide information on the after-tax profitability of the project, and a broker will locate an investor to purchase the project. This involves the ownership and operation or use of real estate. The lending decision is based upon underwriting, which is assessing the risks and returns. When the risks and returns from a loan are favorable, a lender will make a loan. Without borrowed money, very few development projects would occur.
Lending also involves processing loans.
Many individuals specialize in loan processing. A broker or salesperson usually works on a commission basis, meaning their fee is a percentage of the sales price. Their job is to find a buyer to purchase property on terms acceptable to the seller. Laws have been established in all 50 states and the District of Columbia requiring brokers and salespersons to be licensed. Marketing specialists also collect data on the local real estate market to assist them in judging real estate values.