Through our website, the most common question we receive is “How do I quickly start investing in preconstruction?”. Realistically, you only need to take three steps on your path to be a “beginner”
preconstruction investor to one who is extremely smart.
MECHANICS OF INVESTMENT IN PRECONSTRUCTION
even before you start
investing, you need a working knowledge of what exactly it means
for the investment in “preconstruction”, why preconstruction
the investment generated returns in excess of 100% per year for many
investors, what is the terminology used in actual preconstruction
real estate investments, etc. The good news is that this is the easiest way.
step to give
As an example, in this stage you will learn terms such as
reservation, hard contract, assignment of contract, letter of
credit, to name a few. Even if you’re new to investing, don’t
let that intimidate you. Every time I teach a class on this subject,
it only takes 30-60 minutes for everyone to get up
speed on this.
So how do you learn the mechanics of being a pre-build?
real estate investors? My suggestion is to take advantage of the
Free resources available on the Internet. for example in
GetPreConstructionDeals.com gives you a 30 page eBook on
preconstruction investment that will walk you through this basic
terminology and will give you some preconstruction of the real world
Examples of real estate projects. Also, if you make an Internet connection
search in “preconstruction” “investment in preconstruction”
“preconstruction condo” etc. you will find tons of websites
with this type of information readily available. give yourself
a night or two and you should be a master. Unfortunately,
over 80% of new investors stop after Step 1 and immediately want to
to search for “deals”. In my opinion, this is a big mistake.
because they lack what separates the beginning investor
from the seasoned preconstruction investor on the street; tea
methodology to QUICKLY choose “smart investments”
FIND PRECONSTRUCTION PROJECTS
If you did an internet search
In Step 1 above, did you notice how many real estate websites
What did you find with the preconstruction investments in them? But,
just put the term “miami preconstruction” on any internet
search engine and you will see the number of results. here is a
test for you. From your previous internet searches, can you
quickly look at those projects and choose what they might be
worthy of further investigation? Most people feel overwhelmed
at this point, while most savvy investors could classify
most of these in a matter of minutes.
Over the years, in both the stock and real estate markets, I have
I have had the opportunity to work with some really outstanding
investors and I’ve also seen many, many beginners. When a
beginner looks at a preconstruction investment, they ask the
real estate person “How much am I likely to make on this
investment and should I buy it?” When an experienced investor
look at the same inversion, they first ask THEMSELVES “Is this
very low risk investment and if so how much money is it really
at risk?” Then they ask THEMSELVES “How much money am I going to
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 unlikely to
they think this way, but they know how to ask the right questions to
decide quickly if this project has an acceptable risk-reward ratio
proportion to THEMSELVES.
If you are reasonably new to investing, or have always counted
in others to make investment decisions for you, how
do step 2? Simple. You must learn how a smart investor
think, how do they calculate risk, what backup plans do 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 hard to
do. If you are new to preconstruction investing and trying to
Doing all this on your own, however, can be a daunting task. Yo
discover that truly smart investors are always talking to others,
getting their opinions, learning everything they can to make THEIR
Own decision. They know that every little detail they can learn
can literally mean several 10’s of thousands of dollars in
their own pockets.
In practice, you need someone to guide you 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 your acquired education will be priceless.
Plus, learning to think like a preconstruction expert
investor is the reason we created our original home studio
as well as our most comprehensive live teleseminar course.
Many people have no one to turn to other than maybe the
real estate person bringing the project to them. I personally find
that most real estate agents/brokers are fantastic resources for
information, however most do not analyze the investment like me
would do. If you ever find yourself asking your agent or
seller if he “really thinks you should buy this” then
that’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 hard to do.
GROWING YOUR PORTFOLIO
Once you think like a pro in Step 2,
you will have created a problem for yourself: probably
find that few preconstruction projects will fit your goals.
New investors tend to think this is like the stock market…
When they are ready to invest, you should be able to invest
Put your money down and move on. Realistically in stock
and the preconstruction market, REAL OPPORTUNITIES appear
when they are good and ready. When that happens, and only in that
time, then the savvy investor will jump in at lightning speeds.
Remember, for many people, a couple of good investments PER YEAR
is a lot and can then more investment returns than ever
possible.
While this may be hard to imagine right now, after step 2,
must have a clear understanding of the type of investments
what would you consider As an example, suppose you end
concluding that he really likes 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
which have been explosive for a long time. Excellent! now start
get on lists of brokers/developers that bring out those
projects If you can work with a group of like-minded people,
all the better because you can share the workload and also have
additional leverage due to greater potential purchasing power than
just one individual.
However, I warn you that when you think like an expert
investor, you are going to want a lot more information than you
typically provided by these types of sources. you will want a
true assessment of the local market (other than “boy does this have
hot state”), you will want a true assessment of the amount of
similar projects that have been offered or will be offered, and
you are going to want to know a lot about who is buying these
projects and why.
Because we really like detail and because we know we have to
move very fast for good investments, we have always found it
It is better to operate as a group, rather than as one person trying to
to fix this after work. Furthermore, we have found that
pooling the purchasing power of a group we can get a lot
better access to really good investments.
It is for these reasons that we at GetPreConstructionDeals.com
We have created our “Mastermind Group”. I hope this has given you
an understanding of the 3 steps needed to become a reality
preconstruction investor. Some people will see this and say
that it is too difficult or takes too long. yes it will take
some time and some effort. The question I always ask
is then “How many hours at your regular job would it take
make some of the big returns of over $75,000 that some
What are preconstruction investors doing?