How much do Developers actually make?

[Anthony Caleca]

Now I know this is a very broad question and there is so many variables to give a honest answer, such as far as how they financed the project, what they are building, the size of the property and a ton of things more to consider.

But for this post lets just use developers who build luxury spec homes. for instance we can use a big market like Los Angeles, how much do they developers really make who buy a single family house and develop a new luxury modern home and then put it on the market for Millions and millions.

Seems like there is a ton of risk involved with it, and also seems like they rely heavy on financing with both debt and equity component. So after every gets paid, do they really clear a few million each project like shown on TV?

feel free to use real life examples, I know everything on TV is glamorized, but I do know a few developers in LA and NY who buy develop and sell theses beautiful spec homes with in a 18-24 month time frame, and it seems like they are CASHING OUT big time.