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Why do developers use so much debt?

I know a few developers in my area who do subdivisions and condo buildings, I’ve looked through some of their finances and it seems like they use an huge amount of debt compared to investors. It would seem like they are over leveraged on paper, if there was a market downturn they would be screwed. How are they able to use that much debt for an asset that doesn’t even exist?

submitted by /u/NotYaNigga
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source https://www.reddit.com/r/RealEstate/comments/eidqio/why_do_developers_use_so_much_debt/
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