|Real Estate Information|
How To Get Started In Preconstruction Investing?
Through our website the most common question that we receive is "How do I get rapidly started in preconstruction investing". Realistically, you only need to take three steps on your path from being a "beginner"preconstruction investor to one that is extremely savvy.
MECHANICS OF PRECONSTRUCTION INVESTING
As an example, in this stage you will learn terms likereservation, hard contract, assignment of contract, letter ofcredit, to name a few. Even if you are new to investing, don'tlet that intimidate you. Whenever I teach a class on this topic,it only takes about 30 to 60 minutes to get everybody up tospeed on this.
So how do you learn the mechanics of being a preconstructionreal estate investor? My suggestion is to take advantage of thefree resources available on the internet. For example, atGetPreConstructionDeals.com we give a way a 30-page ebook aboutpreconstruction investing that will walk you through this basicterminology and will give you some real world preconstructionreal estate project examples. Also, if you conduct an internetsearch on "preconstruction" "preconstruction investing""preconstruction condo", etc., you will find tons of websiteswith this type of information readily available. Give yourselfan evening or two and you should be a master. Unfortunately,over 80% of new investors stop after Step 1 and immediately wantto look for "deals". In my opinion, this is a big mistakebecause they are lacking what separates the beginning investorfrom the street-seasoned preconstruction investor; themethodology to RAPIDLY pick "smart investments"
FINDING PRECONSTRUCTION PROJECTS
Over the years, in both the stock and the real estate markets, Ihave had the opportunity to work with some truly outstandinginvestors and I have also seen many, many beginners. When abeginner looks at a preconstruction investment, they ask thereal estate person "How much will I likely make on thisinvestment and should I buy it?" When an experienced investorlooks at the same investment, they first ask THEMSELVES "Is thisinvestment really low risk and if so, how much money is reallyat risk?" Then they ask THEMSELVES "How much money am I likelyto make if this investment works?" In their mind, they aretrying to determine the amount of reward, relative to the risk.They know that the person marketing this project is UNLIKELY tothink this way but they know how to ask the right questions toquickly decide if this project has an acceptable reward-to-riskratio for THEMSELVES.
If you are reasonably new to investing, or have always countedon others to make investment decisions for you, how do youperform Step 2? Simple. You must learn how a savvy investorthinks, how they calculate risk, what back-up plans they have inplace in case the investment does not work, how they calculatereward, etc. None of this is rocket science or even difficult todo. If you're new to preconstruction investing and are trying todo all this on your own, it can be a daunting task, however. Ifind that truly savvy investors are always talking to others,getting their opinions, learning anything they can to make THEIROWN decision. They know that every little tidbit they can learncan literally mean several 10's of thousands of dollars intotheir own pockets.
Practically, you need somebody to mentor you that has "been tothe dance" many times before. If you know somebody in thatcategory, buy them lunch, dinner, movie tickets, whatever andask if they would look over your shoulder. If you know severalpeople in this category, better yet. Your lunch bills will bepricey but your education gained will be priceless.
In addition, learning to think like a savvy preconstructioninvestor is the reason that we created our original home studycourse as well as our more complete live teleseminar course.Many people don't have someone to turn to other than maybe thereal estate person bringing them the project. I personally findthat most real estate agents/brokers are fantastic resources forinformation, however most do not analyze the investment like Iwould. If you ever find yourself asking your agent orsalesperson if "they really think you should buy this," thenthat is probably a good indication that you are ill prepared.
No matter how you accomplish it, learn to think like a savvyinvestor for YOURSELF; it just is not that hard to do.
GROWING YOUR PORTFOLIO
While this may be hard to imagine right now, after Step 2 youshould have a clear understanding of the type of investmentsthat you would consider. As an example, suppose you end upconcluding that you really like condo/town home projects, not onthe beach, and in the southeast. In addition, you want theseinvestments in some emerging markets but not necessarily thosethat have been explosive for a long time. Great! Now startgetting on lists of brokers/developers that bring out thoseprojects. If you can work with a group of like minded people,all the better because you can share the workload and also haveadditional clout because of a higher potential buying power thanjust one individual.
I will caution you however that when you think like a savvyinvestor, you are going to want a lot more information than istypically provided by these types of sources. You will want atrue assessment of the local market (other than "boy has thisbeen hot"), you will want a true assessment of the amount ofsimilar projects that have been or are going to be offered, andyou are going to want to know a lot about who is buying theseprojects and why.
Because we like a lot of detail and because we know we have tomove very quickly for good investments, we have always found itbetter to operate as a group, rather than one lone person tryingto sort this out after work. In addition, we have found that bypooling together the buying power of a group we can get muchbetter access to really good investments.
It is for these reasons that we at GetPreConstructionDeals.comhave created our "Mastermind Group." I hope this has given youan understanding of the 3 steps needed to become a truepreconstruction investor. Some people will look at this and saythat it is too hard, or too time consuming. Yes it will takesome time and some effort. The question that I always ask themis then "How many hours in your regular job would it take you tomake some of the large $75,000+ returns that somepreconstruction investors are making?"
Dr. Chris Anderson is a co-founder of http://www.GetPreconstructionDeals.com and is referenced in many venues including the New York Times and USA Today. Download his free, 30+ page preconstruction investing ebook today at Get Preconstruction e-Book
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Ten Tips For Selling Your House
One of the biggest mistakes people make when selling a house, is not understanding real estate value. It doesn't matter at all what you think your home is worth.
How To Find a Real Estate Agent
You may be of the opinion that you don't need a real estate agent and that using one will add to the cost of buying your new home.The fact is that a real estate agent's fees are typically paid by the seller of the home.
Prepare Your House for a Successful Sale
Whether you list with an agent or sell on your own, you can ensure a quick sale by proactively preparing your house to be a highly marketable and attractive commodity.Paradigm ShiftDon't wait for the sold sign to get started with packing.
Real Estate Negotiation Secrets
When you bought your home, you offered less than you were willing to pay, right? That's the most common negotiation technique. For experienced investors, however, that's just one little secret among the many more powerful ones.
At Home In Your Overseas Home
Homeownership, in any form, is a big step for most people. In fact, it's often one of the biggest financial decisions of our lives.
Important Facts For Home Buyers
If you are considering buying a home or have spent many years saving in preparation of buying a home, the questions and process involved in buying a home can be extremely stressful. As exciting as it is to begin looking for your new home, there are many unexpected costs and details to be considered before contacting a real estate agent.
What Does It Take To Be A Donald Trump in Real Estate?
Since you are a business oriented person, you might be thinking: "oh, great, here it comes another fad that sounds to good to be true and I don't have time for this now." Well, the fact is, like gravity you do not have to believe in Feng Shui for it to work.
Finding Structural Problems During Escrow - Small Rural Home Example
In rural home purchases, the transaction is often subject to a satisfactory home inspection being done. Any imperfections are usually corrected during escrow.
Empty Nesters Flock To Inner City
Babyboomers whose children have left home, commonly known as "empty-nesters" are buying inner city apartments in record numbers.Director of Acton Special Projects, Marc Drexel says the trend is towards quality rather than mass developments.
Make Money As A Slumlord
Be a slumlord? Okay, I got your attention, now the truth. I really don't recommend that anyone endanger their renters with unsafe housing.
Real Estate Investing with No Cash and No Credit
Lots of folks think it can't be done.How in the world can you buy a piece of real estate property without cash or credit? How is it possible to buy a $50,000 house or a $1 million dollar house if I don't have an abundance of cash or an excellent credit rating?Nothing stops a would-be investor cold in his tracks like "no cash or credit.
Flat Fee MLS Listings - Is This The Future Of Real Estate
Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market.
The Echo Boomers - The Next Big Consumers
The Echo Boomers or Generation Y currently make up about one third of the US Population. Many of the Echo Boomers are starting to reach an age where they want and need things like, Houses, Cars, Insurance.
What are the Top 11.5 Criteria for Selecting an Orlando Investment Property
1. Make sure units are larger than 1800 square feet.
How Can the Average Person Build Wealth in Real Estate?
Books on real estate are a dime a dozen-and most focus on taking advantage of someone else's misfortune. They frequently describe lofty methods for buying and selling properties no ordinary citizen can be successful using.
Old House? New House? Weighing Your Options
Maybe it has something to do with a childhood home we fondly remember. Many of us long for old homes built with solid construction, quality craftsmanship and beautiful details.
Finding A Capable Agent To Meet Your Real Estate Needs
Whether you're a first-time buyer, selling your current home or relocating to a different part of the country, the support of a qualified, knowledgeable real estate agent can alleviate many of your concerns and ensure a smooth transaction. A professional agent can market your present residence, help you locate the home of your dreams and assist in making your transfer to an unfamiliar area easier.
Raising Money For Property Development
In addition to finding the right property, one of the most difficult aspects of property development is being able to fund the purchase and re-development of the property before putting it back on the market.Many would-be property developers have the skills and flair for property development, but lack the financial clout to put these into practice.
Stay Motivated With REI Till The Deal Comes
I know many investors step into the game of real estate investing with high hopes of landing the deal that will turn their financial situation around and yes some do and this is not for you - this is for the investors still looking for that first deal!The best way starting out in this business, staying motivated and sticking to real estate investing has to do with one big factor!Keep your JOB - Yes you may be "Just Over Broke" but real estate investing comes with no guarantees of doing a deal in 30, 90, or 120 days as a matter of fact deals come and they go. real estate investing has its good times and it's bad times!You need a source of income and without it the likely hood of failure will soon follow!Having a stable income is the number one goal to having financial well being and your mental and emotional well being also.
How To Find An Experienced Monticello Illinois Realtor
Finding a professional Monticello Realtor in Illinois is thebest way to find the perfect property or home. A licensedrealtor can assist you in locating the type of property youwant in the price range you desire.
|home | site map|
|© 2006 TIGER MEDIA|