Pre-Construction

General Real Estate Investing
1

Hi,
I’m looking into pre construction investing and just wondering if someone who’s done it could give me some advice as far as what to look out for, or anything pertaining to this subject.

           Thanks!
2

[quote="Mic
I’m looking into pre construction investing and just wondering if someone who’s done it could give me some advice as far as what to look out for, or anything pertaining to this subject.

           Thanks!

What market and what price range?

You will need money down, $10,000 to 20%.

Moneytalks

3

In the Florida market and anywhere from 250k - 1mil.

4

Mic,

There are still a lot of good opportunities in the Florida market.

Prepare yourself:

Buy only new construction, built under new codes.

Buy where the water can not reach you. (Over 20’ above sea level)

If beachfront, it’s best to have at least one level of parking under
The building, so water can pass through and not enter the lower level.

Buy well under value.

Read everything…. Contract, condo docs, contractors website.
Understand what they say!

Check out
www.developerwatchdog.org

A great game to play, just gain some understanding before you start.

Moneytalks

5

I’ve had some people tell me not to buy Condos but only buy Single Family. What do you think about that?

6

condos are hit harder in a downturn. however once SFHs flatten out, the condo market continues
to appreciate.
also check out this link.
http://moneyshaker.blogspot.com/2005/09/how-to-invest-in-pre-construction.html

7

I appreciate all the advice and look forward to anything else that comes my way!!!

8

just be careful with the florida market. its becoming saturated with investors.
in particular stay away from miami condos.
during the last cycle miami got massively overbuilt and a lot of people lost money.
also, i just read an article on how with the rise in construction costs, many builders
wouldn’t be able to build for the amounts promised to buyers and would have to
file bankruptcy.