This direct approach to purchasing involves purchasing real estate contracts on a project typically before it has started. PropertyVestors purchases the properties directly from the developer in order to maximize profits and in most cases negotiate group discounts and/or incentives. It's a strategy that allows PropertyVestors's members to purchase preconstruction contracts from developers under or at first-tier pricing. Because of our buying power, we typically have access to premium lots with stong resale probanilities.
What are the advantages of preconstruction purchasing?
Purchasers receive the benefit of buying at special prices that can result in instant equity. They can secure the deal with a small down payment and pay the balance after they close. When the project closes—and sometimes before—they can sell at a higher price.
How much can I earn with preconstruction real estate?
The rate of return is dependent on how long you will hold on to the property. Most preconstruction purchases will be sold within a two-year period. Although these purchases are labeled as aggressive risk, we have very stable relationships with a few choice developers and research specific areas before making any recommendations.
How does preconstruction purchasing differ from preconstruction syndication?
Preconstruction purchasing allows purchasers to maximize their profits by not having to split them with a syndication provider to receive preferential terms. These terms can include lower deposits, larger price discounts, the ability to assign/resell units prior to closing, and a refund of the deposit if the developer defaults or takes too long. Essentially, preconstruction syndication purchasers are in the best position to minimize their risks while maximizing their returns. Preconstruction purchasing increases your risk and maximizes your return with triple-digit returns.
With the current real estate market, are there still good preconstruction opportunities for purchasers?
Yes. Preconstruction projects involving high-end condos and lots are still producing staggering returns. PropertyVestors purchases real estate in high demand areas such as coastal vacation resorts, lakes and big cities. You will typically find us researching areas that interest baby boomers.
How can I get started with preconstruction purchasing?
That’s easy. Contact PropertyVestors, and we’ll help you find an opportunity that’s right for you.
