I am in the process of pre construction in fl area, i have just under 80k of saved up money… I want to buy multi pre construction units, i am trying to search for the best deals contacting developers some require 20% 10% 5% as you already know… Do you think this is a good plan i have to get good returns? the pre construction process just sounds to good to be true, is there anyone out there that can show me a few tricks to make this process go smooth? i am in it for the money obviously i am not sure i want to rent out when the projects are completed just to sell and take the profits and keep doing the same thing… well if there is anyone here that has info or even projects that are about to start up with a phase that would be great, any help would be great. I am 26 and own a home so i figure if i have no fear that by the time i am 40 i can have some decent $$ in the bank… this is a great site
Be careful as a lot of the pre-com builders are getting p… off with the flippers out there. I personally knew of a property that was sold three times in six months! Builders are now starting to put clauses in their sale contracts that state no selling within 12 months or if you do, then a % has to be kicked back to the builder and, as he owns the property, this is totally legal under contracts law. Just watch out if you are after the quick dollars which it sounds like you are … study the contract carefully and ask the questions or you may find yourself having to be a landlord for one year and one day … which is not a bad thing tax wise. Just my 2 cents (which is about half a cent US with the current exchange rate).
I myself am very cautious of pre-construction. If you speak to the large RE investors as I do, they all say the same thing. Stay away from pre-construction. Many projects are not even breaking ground due to rising construction costs that were not factored in.
Every large player I know is buying condo conversions and land.
I am not saying that people are being ripped off, but many have had their money tied up for 1-2 years only to find out that they are getting a refund. Nothing could be worse than having your capitol tied up and not working for you. with condo conversions your money is working for you immediately.
I have many good areas to go into in Florida. I personally am buying in 6 different projects that are both conversions and land. If you would like to hear my areas of interest please email me.