Real estate obtained by a building professional through various means, such as purchasing foreclosed homes or land for development, represents a significant segment of the property market. For instance, a construction company might purchase a dilapidated house, renovate it, and then sell it for a profit, or secure land to build new housing units. This practice can involve properties at different stages of development, from undeveloped land to partially completed projects.
This acquisition method offers several potential advantages. It can provide opportunities for revitalizing neglected properties, increasing the housing supply, and stimulating local economies. Historically, such practices have played a role in urban renewal and suburban expansion, though the specific impact varies depending on the market conditions and the individual projects. Furthermore, it allows building professionals to leverage their expertise and resources to maximize the value of the real estate they acquire.