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Real Estate Holding Company and Real Estate Development Company?


If i start a real estate holding company, im basically buying properties and holding them for investments?

Development companies are the ones that buy, fix, and sell? Can they at the same time hold them for investments or they have to sell?

Which would you consider? And why?

The holding company would simply own the other business, with no other functions except to provide for the shareholders of the business. The other company would be a subsidiary of the holding company, and would be responsible for buying, maintaining and selling the properties.

Holding company Definition:
"A holding company is a company that owns part, all, or a majority of other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself, rather its only purpose is owning shares of other companies. Holding companies allow the reduction of risk for the owners and can allow the ownership and control of a number of different companies. Eighty percent or more of voting stock must be owned before tax consolidation benefits such as tax-free dividends can be claimed."

Hope this helps.

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