adorablesites.com adorablesites.com
  Index Page :> About Us :> Place Your Link :> Privacy :> Terms of Use :> Add Article
Search:   
 
 

Do-It-Yourself Guide: Home Selling for Rookies

A do-it-yourself guide - Home Selling for Rookies to help you get started selling your house the rig ... - B Shelton
 

Estate Planning for Parents

Few groups have more need of estate planning than parents. Without a plan, parents will have no say ... - Bart Scovill
 

UK Land for Sale Market ? Investments Watch

UK Land for Sale Market ? Investments Watch - Stephen Brewood
 
 

Becoming a Real Estate Investor 101

It's a new year stop sitting around day dreaming of becoming a real estate investor. Get started tod ... - Fred Egins
 

Slowing Real Estate Markets Feature St. Joseph

With the slow down in the real estate market even my Jewish home sellers have discovered St. Joseph. ... - Mark Nash
 
 

Index Page –› Realty & Property –› Property Websites
 

What is PreConstruction Property Investing? Florida is Exploding!

 

Simply put: The most Profitable way to Invest in Real Estate!

-Investing Leverage (small down payment no mortgage payments until completion)

-Built in equity from ground zero. (Buy at a discount - lock in a equity profit when you purchase)

-Appreciation works in your favor. (12 month build out period)

-Lock in today's prices for future delivery of completed product.

-Less Risk than traditional real estate investing.

Superior Product

-Ease of the purchase process. (Turn-Key for investors

-Multiple Investment Opportunities)

-Ability to customize for resale potential. (paint, flooring, amenities, bathrooms & lighting)

-Modern designs. (energy efficient, desirable floor plans, kitchens, bathrooms & new applicances)

-New Property-no mainteance / repair costs. (Builders warranty on new home & Manufactures warranty on appliances)

Superior Exit Strategy

-You can market your new home prior to completion. (Have buyer waiting to purchase prior to completion)

-Ease of Resale. (large pool of potential buyers for completed new homes)

-Ease of Rentals. (large demand of potential renters for new homes)

Preconstruction Real Estate Investments

The preconstruction real estate investment process is an opportunity that allows investors to purchase the finished properties of tomorrow at today's lower (preconstruction) prices.

While this relatively new program provides an excellent opportunity for all the parties involved (investors, builders & developers), the biggest advantage falls to the investor who gains the chance to buy their pre construction home at a discounted price, without being required to invest a large amount of out of pocket money. Most preconstruction investment programs require an initial investment as low as 5% of the total costs of the home. As the buyer (investor), the pre construction opportunity allows for a limited investment, while receiving substantial discounts over the future price of the finished home.

Pre construction investment programs benefit the project developer by allowing them to presale the entire development property before any construction begins, allowing them to obtain the lending for the project with relative ease. To begin the process, the property developer puts out for pre sale the building plans for the proposed development.

At the time of this presale, the buyer does not see the finished product (which is where we get the term "preconstruction" investment), only the floor plans for the future homes. Because of the buyers willingness to invest without seeing the finished product and the fact that they are helping the developer achieve the required percentage of pre sold units for construction financing, the prices for these homes are usually at a significant discount below the proposed price of the finished unit.

Once the investor has selected their floor plan and the lot location, the next step is placing the reservation. As previously stated, most preconstruction properties have a very reasonable reservation amount; at contract or at the beginning of construction normally between 5 and 10% (with some programs hitting up to 20%) of the total cost for the home, plus closing from 3 to 4%. An example of this low out of pocket investment amount can be found with the current preconstruction program being offered ( BuyPreConstructionToday.com ), which requires an investment of only $5,675.00 complete out-of-pocket for a $240.000.00 new home. That is an excellent use of leverage with only 2% all in.

After the proper paper work has been completed and funding has been finalized, the next step is the construction phase. This phase will normally last anywhere from 6 months to 2 years depending on the type of project, with single family homes typically taking only 8 to 12 months. During the building process, there may be several increases in the value of your home. At completion, you can sell your home and harvest the built up equity - appreciation or rent it out for cash flow. For those who plan to sell, it can be marketed 3 months prior to completion.

Author: Doug Lasley
 
Author Bio:
Doug Lasley is an expert on this subject. Doug has written several articles in the past on this topic.
 
 
 

Related Articles

 
Real Estate Agents in Minnesota
 
How To Stop Foreclosure
 
New House Buying -- Tips for Beginners
 
Home Selling 101: Getting Your Home Ready for the Home Inspection
 
Sustainable Building Design: The Hybrid Answer to the Gas Guzzling House
 
Probate: A Simple Explanation of a Daunting Topic
 
Do You Really Need A Will?
 
FSBO: For Sale By Owners Chapter Three
 
Will Gold Outperform Real Estate This Year?
 
Finding a Way to Purchase a Home
 
 
 
Multiple links exchange
 
 

Health & Therapy

 

Finance & Banking

 

Music & Entertainment

 

Realty & Property

 

Self Healing

 

Hotels & Travel

 

Drink & Food

 

Jobs & Careers

 

Lifestyle & Fashion

 

Software & Networking

 

Automotive

 

Healthcare & Medicine

 

Government & Politics

 

Home & Garden

 

Research & Science

 

Business & Services

 

Outdoor & Sports

 

Culture & Art

 

Children

 

Online & Board Games

 

Events & News

 

Shopping Online

 

Society & Issues

 

Academics & Learning


 
Index Page :> Privacy :> Terms of Use  
Copyright © www.adorablesites.com - All Rights Reserved Worldwide.