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What is Preconstruction Real Estate Investing?
First let’s talk about exactly what “Preconstruction
Real Estate Investing” is. Preconstruction real estate investing is the
art of buying properties, usually condos or townhouses, at a very early stage in
the construction process. Profit is acquired from then selling it months or
sometimes even years later at a substantial difference.
Programs for Real Estate Investors
Speculative building for the purpose of property investment can take many
different shapes and forms besides the various style, shapes and sizes of
homes. Similar to anything the process can be relatively simple or extremely
complex. Most of what will determine the level of complexity is attributed to
the goals of the individual investor and the methods that must be employed to
achieve those goals. With such a wide range of products there are many vital
“project shaping” decisions that must be addressed and understood prior to even
looking at a single contract. For instance, the market segments the investor is
targeting, selecting from the appropriate finance products available, the home
builder to use and as well the style, size and quality of home. All of these are
very serious considerations that will have an effect on your intended outcome.
For the purpose of outlining a project we will look at a “single family spec
home” intended to be held as a rental. This is one of the least complex
programs and it will include most of the considerations necessary throughout our
program portfolio. Additionally, if evaluated and executed properly, this
strategy is highly regarded among many real estate investors as relatively
common and as a historically proven method of property investment.
Programs are divided into tier levels to assist in understanding the level of
complexity, involvement, capital, and time commitments.
***Up to $250k - Tier One – Projects are ideal for clients just
beginning to invest in real property as well as those that are experienced.
Overall project costs will be the lowest.
***$250k - $350k-Tier Two – Project costs begin to get higher and
are suitable for those individuals that are prepared for additional decisions
and commitment. Generally, recommended for reasonably experienced individuals.
***$350k and above - Tier Three – Project costs can exceed $1M.
Projects will often require a variety of involved decision making and
substantial time and capital commitments. Clients endeavoring projects of such
substance should have experience with a variety of property investments.
***Total project costs will generally be inclusive of land
price, home or floor plan, home upgrades or features, all construction costs,
financing costs, all fees and commissions, and closing costs.
Costs will vary per project. The pricing for any one project is very much
dependant on market conditions, lending products, client’s qualifications,
builder pricing, and several additional variables only to be determined once a
project is identified. All land and home pricing can be determined with the
assistance of your J. Roberts & Co. Real Estate Professional. Any and all
actual financing figures can be derived with the assistance of a qualified and
licensed Mortgage Professional.
Risks and returns are entirely determined by market conditions and to be
evaluated independently by each individual purchaser and seller of real
property. Returns on any real property purchased as an investment cannot and
will not be guaranteed or ensured by anyone employed by, associated with, or in
any way affiliated with J. Roberts & Co. or otherwise.
(WARNING: Anyone claiming to ensure or guarantee any real estate investment
returns should be scrutinized very carefully)
To receive Program Outline for Preconstruction Investments, please fill out form
below.
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