Pre sales

How do you feel about pre-sales? Looking at a couple in the Phoenix area. 10 and 15K down. Market price now before construction, 150,000 to 215,000. 27% growth in the area. Should be built in 18 months.

Howdy Greenridge:

With that kind of growth you should be fine. Try to figure the timing cycle. You do not want to buy at the top of the growth curve and have no one to sell to or have to take less at the bottom. How long has the area been growing at that rate? I personally prefer more of an active investment doing fix up and reselling but you should be able to double your money if it all works out for you.

Tedjr, this area is just outside of Phoenix and is one of the top three fastest growing areas in the U.S. It has been at this growth rate for at least a year and is projected to continue at this rate or something close to it for sometime into the future. I can’t imagine how this wouldnt work. I too am also into the hands on end of REI. I work in residential construction and enjoy the fix up and I am always on the look out for a good wholesale house. I admit I dont have a ton of experience but I am slowly educating myself with programs I own including Mr. Sheets.