The idea of pre-construction investments when it comes to real estate is actually a very clever way in which many have made millions. The theory is simple really. Investing in a property before that when the designer. Who will be the construction of these buildings need the money and investors to get the building on the ground. Investment (in many cases substantially the purchase of call options) in one unit, usually the condo units in high demand areas, before ground is broken investors often have the option of investment for pennies on the dollar once the building is always full and can re-sell the property to full market value once the building is completed, pocketing the difference in initial investment and the sale price.
This is a win-win situation for many manufacturers, or "own" the property in questions because 'pre-sale "of the units allows lending agents have confidence in the validity of the project as a worker in money by sale of many of the eyes invisible units. The advantage for investors is that they are able to buy at a price much lower than before the construction and can sell it later after the total market value (or more in some high demand and the "saturation of the real estate).
This investment style is not as glamorous as the homes of some flipping. No beast for the restoration of beauty. There are, however, some things to consider when making this type of operation.
First, there is no marital always guaranteed profit no matter what the glossy brochures tell you something. With current trends in the sale of goods is generally not the best environment for investment in pre-construction, but these things tend to change regularly and that the market may try again in the very near future.
Second, networking is becoming the best way to get into this business in particular. There are all kinds of real estate investors that fly at night. Those who manage to endure is the network with other realtors, and those with specific interests and experiences with pre-construction investments. Join local groups in addition to online groups that deal specifically with this type of investment to get more information faster. These costs may seem daunting at first, but are much less than the cost to enter the head, having no knowledge of the most basic "ins" and investment "should be" pre-construction real estate.
Third, develop a close relationship with a realtor who specializes in this particular type of investment goods.
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