Pre Construction?

Does anyone else do residential pre construction? I see a lot of talk about nearly every other RE investment approach, but nothing about pre construction. It’s fast become our personal favorite way to invest (as flips), although we’re still picking up existing properties when the deal is right as well. Gotta have some long term stuff too! :slight_smile:

Anyway just curious if anyone else is into it. We’re mostly in certain areas of Florida right now although there is some potential in Kansas City that I’m still looking into.

Jonathan

We have a lot of experience with single family site built pre-construction. You need to make sure the financing is right and the you have at least 85%LTV , 80%LTV is better. Look for areas that are in need of housing in the price range you are purchasing. It is good to have 6 months reserve payments but on a good deal you probably won’t need it. Forget about those deals that promise a riduculously high value increase. If you buy the property at 85% you will make a generous profit without having to depend on value increases.

I know of several pre-construction deals in various places. Hope this helps.

Picusnow,
Where are the pre-con deal you know about.

How do you get these properties below FMV? I mean its brand new, they are going to want retail for them, correct?

can I post that kind of information on the forum?

I have a website on my profile with contact information.

I would buy lots before the subdivision is recorded instead of preconstruction. YOu can usually make a lot of money just in the flip of the land itself…