Through our website, the most common question we get is “How can I quickly get started investing in preconstruction?” Realistically, you only need to take three steps on your way from being a “beginner.”
preconstruction inverter to one that is extremely smart.
MECHANICS OF INVESTMENT PRIOR TO CONSTRUCTION
Even before i start
invest, you need a working knowledge of exactly what you mean
investing in “preconstruction”, why preconstruction
Investing generated returns in excess of 100% per year for many
investors, what is the terminology used in actual preconstruction
real estate investment, etc. The good news is that this is the easiest
step to give.
As an example, at this stage you will learn terms like
reservation, rigid contract, assignment of contract, letter of
credit, to name a few. Even if you are new to investing, no
let that intimidate you. Whenever I teach a class on this topic,
It only takes 30-60 minutes for everyone to catch up
speed on this.
So how do you learn the mechanics of being a preconstruction?
Real estate investor? My suggestion is to take advantage of
free resources available on the internet. For example in
GetPreConstructionDeals.com we give you a 30 page e-book form about
pre-construction investment to guide you through this
terminology and will give you a preconstruction of the real world
examples of real estate projects. Also, if you perform a
search under “preconstruction” “investment in preconstruction”
“pre-build condo” etc, you will find tons of websites
with this type of information available. Give yourself
a night or two and you should be a teacher. Unfortunately,
more than 80% of new investors stop after Step 1 and immediately want
to search for “deals”. In my opinion, this is a big mistake.
because they lack what separates the novice investor
from the street-savvy pre-construction investor; tea
methodology to QUICKLY choose “smart investments”
FIND PRE-CONSTRUCTION PROJECTS
If you did an internet search
In step 1 above, did you see how many real estate websites
came across preconstruction investments in them? Not,
just put the term “Miami preconstruction” anywhere on the internet
search engine and you will see the number of results. Here’s a
test for you. From internet searches done previously, can you
Quickly look at those projects and choose which ones they could be
worthy of further investigation? Most people get overwhelmed
at this point, while most savvy investors might classify
most of them in a matter of minutes.
Over the years, both in the stock market and in real estate,
I have had the opportunity to work with some
investors and I have also seen many, many beginners. When a
beginner looks at a pre-construction investment, they ask the
real estate person “How much am I likely to make from this?
investment and should you buy it? “When an experienced investor
look at the same investment, first they ask “Is this
very low risk investment and, if so, how much money is it really
at risk? “Then they ask” How much money do I have
do if this investment works? “In his mind, they are
trying to determine the amount of reward, relative to risk.
They know that the person marketing this project IS NOT LIKELY
they think this way, but they know how to ask the right questions of
quickly decide if this project has an acceptable risk-reward
relationship for THEMSELVES.
If you are reasonably new to investing or have always counted
others to make investment decisions for you, how do you
perform step 2? Simple. You must learn how a smart investor
think, how they calculate the risk, what backup plans they have in
place in case the investment does not work out, how do they calculate
reward, etc. None of this is rocket science or even difficult to
do. If you are new to pre-construction investing and are trying
Do all of this on your own, however it can be a daunting task. I
discover that truly smart investors are always talking to others,
get their opinions, learn all they can to do YOUR
OWN decision. They know that every little detail that they can learn
can literally mean several tens of thousands of dollars in
their own pockets.
Practically, you need someone to guide you and who has “been in
the dance “many times before. If you know someone in that
category, buy them lunch, dinner, movie tickets, whatever and
ask them if they would look over your shoulder. If you know several
people in this category, even better. Your lunch bills will be
expensive, but the education obtained will be priceless.
Also, learn to think like a smart preconstruction
investor is the reason we created our original home studio
course, as well as our most comprehensive live teleseminar course.
Many people have no one to turn to except perhaps the
Real estate person bringing the project to you. I personally find
that most real estate agents / brokers are fantastic resources for
information, however most do not analyze the investment as I
would do. If you ever ask your agent or
seller if you “really think you should buy this” then
it’s probably a good indication that you’re not ready.
No matter how you do it, learn to think like an expert
investor for YOURSELF; it’s just not that difficult to do.
GROWING YOUR PORTFOLIO
Once you think like a pro in step 2,
you will have created a problem for yourself: probably
Find out that few pre-construction projects will meet your goals.
New investors tend to think of this as like the stock market …
When they’re ready to invest, you should be able to invest
Put down your money and move on. Realistically, in action
market and the pre-construction market, REAL OPPORTUNITIES appear
when they’re good and ready. When that happens, and only in that
time, then the smart inverter will launch at lightning speed.
Remember, for many people, a couple of good investments PER YEAR
is enough and there may be more investment returns than ever
dreamed possible.
While this may be difficult to imagine at this point, after Step 2,
must have a clear understanding of the type of investments
that you would consider. As an example, suppose it ends
concluding that you really like condo / townhouse projects, not in
the beach, and in the southeast. Also, you want these
investments in some emerging markets, but not necessarily in those
that have been explosive for a long time. Excellent! Now start
get into lists of brokers / developers that bring out those
Projects. If you can work with a group of like-minded people,
much better because you can share the workload and also have
additional influence due to higher potential purchasing power than
just one individual.
However, I will warn you that when you think like a crafty
investor, you will want a lot more information than you
normally provided by these types of sources. You will want a
true assessment of the local market (aside from “the guy has this
hot state “), you’ll want a real assessment of the amount of
similar projects that have been or will be offered, and
you’ll want to know a lot about who buys these
projects and why.
Because we like detail a lot and because we know that we have to
move very fast for good investments, we have always found it
It is better to operate in a group, rather than one person trying
to fix this after work. Furthermore, we have found that by
grouping together the purchasing power of a group we can obtain a lot
better access to really good investments.
It is for these reasons that at GetPreConstructionDeals.com
we have created our “Mastermind Group”. I hope this has given you
an understanding of the 3 steps necessary to become a reality
preconstruction inverter. Some people will look at this and say
which is too difficult or time consuming. Yes, it will take
some time and some effort. The question that I always ask them
is then “How many hours in your regular job would it take
make some of the big returns of $ 75,000 + that some
preconstruction what are investors doing? “