Newbie Pre Construction Investor Seeking Advice

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I am interested in learning how to be an effective pre construction investor. What questions should I first ask myself before investing in a pre contruction. I am looking at beachfront property a little beyond the destin area in Florida. The Beach front condos I am looking at allow a tranfer before closing.

I am interested in finding out what are the major clues to determining whether I am making a good or bad investment.

What should I look for and what should I run from.

Any information would be highly appreciated.



Thanks,

Rey

Comments(9)

  • pleonard337th September, 2005

    Most investments in pre-construction are wise investments as long as you can find buyers for your home on the back end of the deal. I was able to do pre-construction in hernando county Florida for only $2000 out of pocket and made a killing once I found a buyer. I would run from anything that is going to have you put down more than 5% of the total loan amount.

  • anj11308th September, 2005

    You do business with a lender that allows you to build with $2000....can you explain more? Are you actually the builder that is building a single house? Or are you buying pre-construction from a builder?

  • pleonard338th September, 2005

    I work with a lender and a builder that will allow you to buy a plot of land and select a home for only $2000 out of pocket. All other costs are rolled into the loan. Construction intrest is paid to the builder by the lender as well.

  • ezeke2k8th September, 2005

    I work with a developer that is a mortgage lender that allows no money down on pre cons for certain areas.(areas hes developing in).It is definately a good investment in the long run with him

  • JudySellsNaples8th September, 2005

    I work with investors to get them into the best preconstruction in my area--Marco Island, Naples, Bonita Springs, Ft. Myers, Estero, Cape Coral, Punta Gorda, Port Charlotte. Many I have gotten the investors in ahead of the crowd. I suggest you stay out of high rises unless they are beachfront. Many of the very high end projects in my area (even some on the beach other than Naples) had a boatload of investors all trying to get out. ALWAYS put your self in the buyers shoes and ask yourself why you would want to buy in the development you are considering and what would make the unit you are looking at unique? I have several more projects coming up in Naples in the 400+ price range --and NO those are not on the beach. I do have a beachfront Naples one called Moraya that is 3.5 to 5mil. I need your 100K deposit to get in registration for the lottery and I need it by Sept. 15th!! Contact me if you are looking to get into the other projects coming up!

  • ZinOrganization8th September, 2005

    Quote:
    On 2005-09-06 19:25, reyrey wrote:
    I am interested in learning how to be an effective pre construction investor. What questions should I first ask myself before investing in a pre contruction. I am looking at beachfront property a little beyond the destin area in Florida. The Beach front condos I am looking at allow a tranfer before closing.
    I am interested in finding out what are the major clues to determining whether I am making a good or bad investment.
    What should I look for and what should I run from.
    Any information would be highly appreciated.

    Thanks,
    Rey



    The problem i see with pre-construction is that your speculating. speculating is kinda like going to the casino and putting a wadd of cash down on blackjack, or investing in a stock that you dont know anything about. the other problem i see with it is that it (especialy in florida) has gotten to the point that everyone and there 3rd cousin is doing it. To me that is a sign in-itself to run the other way. at this point in time I dont think its a good idea unless you have alot of money to throw around. listen to greenspan, the pre-con is the "froth" that he keeps talking about.

  • anj11309th September, 2005

    pleonard & ezeke2k -

    any chance you would be willing to refer your builder / lender?

  • ezeke2k19th September, 2005

    If you want me to refer my builder,please contect me using the information in my www.profile.Thanks.

  • bnwbaron20th September, 2005

    I absolutely meant Glens Falls. Maybe I should have said Ft. Edward instead…easier to spell. I’m looking at a duplex in Cohoes, any input?

    I found the areas I mentioned through calls, research and networking.

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