The idea of pre-construction investments is purchasing the rights or property before the ground is broken. Investors often have the option of investing for pennies on the expected dollar once the building is complete and can re-sell the property at full market value once the building is complete.
This is a win-win situation for many builders of the property in questions because 'pre-selling' the units allows lending agents to have confidence in the viability of the project. The benefit to investors is that they are able to purchase at a much lower price pre-construction than afterward and can sell afterward at the full market value.
Of course, no real estate venture is ever guaranteed to turn a profit. The market tends to change on a regular basis.
Develop a close-knit relationship with a realtor that specializes in this particular type of real estate investing. This could prove to be the most beneficial thing you will ever do in order to insure future success.
In the end you have several options to choose from: you can sell the property to another investor, sell the home to an individual, or rent the property out.
Janus Real Estate Group * Heather Anderson * 972-765-3773
