There is a company offering an opportunity to join their collective and buy pre construction houses. THey ask that I have a credit score of over 680 and and intial deposit $3000. They forecast that selling the house immediately will yeild 15K in the worst case scenario. They even have a loan place that would cover 6 months of mortgage payments in the event that the house is not sold immediatley.
This program was refered to me buy a lender that was refered to me by a close friend, and have heard of programs like this on the podcast from this site, but it just sounds to good to be true.
My concern is twofold; 1) how do I do my due dilligence in a case like this and 2) how to structure the deal if the house can not be sold in a timley manner.
I know the information that I have given is vague, but any suggestions will be greatly appreciated.
WAKE UP! You’re in fantasy land with this one. No-one is going to do everything and simply give you $15,000! If they had a great way to make money, they would do it themselves.
If you’re looking for instant riches without work, buy lottery tickets or go to Vegas. Better yet, if you’re going to throw your money away, just send it to me. I promise to buy some more rentals with it, but of course I’m keeping the profits for myself!
If you want to be successful with real estate investing, it takes HARD WORK! If you’re not willing to do that, I’d simply forget real estate investing. No one is going to give it to you.
If it looks like a duck and quacks like a duck, it’s probably a …
Thanks Mike! I figured this much, just anted to run by you guys on the forum. anyone else?
Its just a scheme to move inventory. Obviously going to this much trouble to sell the houses should indicate there is a problem with the homes; such as location, quality, oversupply, price etc… This is a pure speculation pitch and the party making the profit is on the other end.
I never understood pre-construction anyway. Every builder I have ever known got his financing built the property and sold it. Pre-construction seems like the builder has decided not to fund his project by the good faith and credit of his company and its reputation and instead fund it off of the greed of others. If the bank won’t loan him the money, then I certainly am not.
General Motors © doesn’t say I have a pre construction car they want you to buy. They build the product they want you to buy and then they sell it to you. The only reason to complicate a straight forward business model is if that model has problems or there is deceit involved.