Everyone thinks developers make money when the building sells.

Wrong, well..somewhat.

That’s the last way they get paid – and by then, most of the smart ones have already cashed multiple checks. Development isn’t about hammers and hard hats. It’s about permits and paperwork. It’s about knowing how to profit before a single shovel hits dirt.

It’s about lobbying and inspiring change, where others see nothing but red tape. That's where the real wealth is made.

Let me show you how real developers – the ones who don’t wait 5 years for a payday – make real money, quick.

The Developer’s Playbook Isn’t What You Think

You think development starts with building.

It doesn’t.

It starts with vision. Knowing that a discarded, underutilized lot has potential. It’s seeing into the future, and pulling that future forward.

Developers bet on their knowledge, expert advice and connections to find opportunities where others’ don’t. They go all-in on black, and when the roulette of life hits, they win big without lifting a finger.

A partner and I bought a killer property in Hamilton Ontario, along a major artery, surrounded by opportunity. A 9-unit apartment on one side. An 84-unit complex beside that. A 108-unit complex down the street in the other direction. The pattern was obvious. The city would push for development, and push they did.

We got a letter saying they were considering rezoning our lot for higher density.

KACHING! KACHING!

Translation? The city was making us money while we slept.

While most of you are out here buying duplexes like 2018 kindergarteners, we’re playing tag in the big kids playground.

No build. No pitch. No fight. Just smart positioning. It was zoning arbitrage in real time. And if you know how to read the land – you can catch these waves too.

You Don’t Have to Build to Make Bank

Here’s what most people don’t understand: developers can make real money without ever building a thing.

It’s called entitlement flipping. You buy a property, rezone it (or just tee it up for rezoning), get plans and permits – and then sell it to someone who wants to build. They pay a premium because you already did the heavy lifting and removed a huge chunk of the risk: city approvals, concept plans, neighbor outreach, zoning meetings. And you get paid for it. And paid well!

You didn’t just sell a property. You sold a possibility.

This works everywhere – not just Toronto, Hamilton Vancouver, Calgary. Ottawa. Anywhere cities are densifying. You don’t need cranes and crews – you need clarity and consultants. Developers who see future zoning changes before they hit the headlines are the ones who cash out first.

They make the big money.

Want to Get Paid Like a Developer? Stop Thinking Like a Builder

Builders get paid when the drywall’s up. Developers take profit throughout the process.

On acquisition (with smart structuring)
After rezoning (because the land value just spiked)
When they bring in builder partners
During the build (with 3–5% development fees baked in)
Once stabilized (hello, cash flow)
On refinance (pulling out tax-free equity)
And finally — if they choose — on the sale

They’re not banking on a “massive payout”. They’re balancing risk, while creating opportunities for liquidity to continue taking on more projects.

Real developers bake multiple paydays into the project from day one. If your plan only ends with a sale, you’re not a developer – you’re a speculator.

It’s Not Luck. It’s Planning.

Sure – that letter from the city upzoning our lot? That was lucky. But that was our plan from day one.

Step 1: Stabilizes

Step 2: Rezone

It just so happened the city did phase 2 without us. It was a win, and a win I’ll happily take.

But smart developers don’t rely on luck and neither were we. They tilt the odds with:

Strategic site selection
Hiring the right consultants
Lobbying for rezonings and planning changes
Watching transit corridors, school districts, employment hubs
Talking to planners before the neighborhood catches fire

They don’t build houses – they build worlds.

And the ones who shape it? They get paid the most.

Curious What Your Property Could Earn?

You might be sitting on a zoning jackpot and not even know it.

Curious what your property could earn before you ever break ground?

I’ll run the numbers.

FAQ: How Developers Make Money

How do real estate developers get paid?

Real estate developers make money through multiple channels: development fees, increased land value through rezoning (entitlement), rental income, refinance proceeds, and eventual sale. The best developers structure deals to profit at each stage — not just the end.

Can you make money rezoning land?

Yes. Rezoning land (also known as entitlement flipping) can significantly increase its value. By securing development rights or more favorable zoning, developers can sell the property at a premium without ever building.

What is entitlement flipping?

Entitlement flipping is when a developer buys a property, secures zoning approvals or permits for higher use (e.g. multi-family), then sells the property at a markup. It’s one of the fastest, lowest-risk ways developers can generate income without building.

How Real Estate Developers Make Money - Part 1