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***Pros in Pre Construction Real Estate Investing***

* It's the Easiest Form of Real Estate Investing - Investing in pre construction real estate is the easiest form of real estate investing, all you need to do is buy a property wait a few months for it to get into a higher phase of construction then sell it for a profit.

* No Head Aches - Pre construction real estate doesn't have nearly the number of problems/headaches as traditional fixer upper real estate investments. Pre construction real estate is brand new out of the box housing, there are no major problems that commonly accompany older houses.

* Free Vacations - Buying pre construction real estate in Florida or Las Vegas means you have a free vacation house when the family goes on vacation. Is that a good investment?

***Cons in Pre Construction Real Estate Investing***

* You Need Money to Make Money - Because pre construction investment real estate is so sought after developers are demanding a higher percent for down payment.

Many people have been requisition me “Mark, why would I buy a censure new pre construction investment condo when I can buy an older one and fix it up and sell it?” This is a good question. Some people do very well purchasing power old fixer uppers and throwing in some new broadloom and new paint and making a few ointment but this is defiantly not for serious investors. In this element I will go over the pros and cons of the “We Buy Ugly Houses” that has gained in popularity over the last few years with the help of some come-hither real estate “Gurus”.

First let’s analyze exactly what these “Gurus” want you to do. They tell you that you don’t need ANY money and if you use their system they can make you a millionaire in just a few short months. If this was true I would have retired a millionaire a long time ago, the truth is the opportunities they talk referring to are VERY few and far among and you add in the factor that every major city has at least 15-20 people trying the same technique as you (They may even have the same $599 CD set!) And you’ll see the odds are stacked respecting you. Now these CDs are not all bad, they do educate many novice investors. But just remember, these “Gurus” do exaggerate the market and do spread a lot of false hope to impressionable new comers. When you listen to the CD’s sets in your car rapidly keep this little fact in the back of your head “They made it rich off selling the CD sets, not from selling real estate” Why would someone who made it rich from real estate want to start selling CDs? It’s like that age old quote says “Those who can’t do, teach”

Now let’s go over the pros and cons of real estate investing. whereas I don’t expect there are many drawbacks in investing in pre construction real estate there are some points that scare people out of the market.

I think it will be easier just to exchange reaction the points and explain. This way all the people looking for a quick unravelling can just live on to the points.

***Pros in Pre Construction Real Estate Investing***

* It’s the Easiest Form of Real Estate Investing - Investing in pre construction real estate is the easiest form of real estate investing, all you need to do is buy a property wait a few months for it to get into a higher phase of construction then sell it for a profit.

* No Head Aches - Pre construction real estate doesn’t have nearly the number of problems/headaches as traditional fixer upper real estate investments. With fixer upper real estate you have to worry again a furnace going, re-paving a driveway, insect infestation, or a whole world of other problems. Pre construction real estate is demarcate new out of the box housing, there are no major problems that habitually time older houses.

* Free Vacations - pre construction real estate in Florida or Las Vegas means you have a free vacation house when the family goes on vacation. Fixer uppers are usually superhighway to your home for easily entranceway and typically not a place your family wants to vacation too. Most people do not have the luxury of purchase a fixer upper house halfway horseback the country and flying down every weekend to work on it.

* Rental Income - Rental income is a huge factor for many pre construction real estate investors. The fact that once the condo or townhouse is formed and they can rent it out for more money then they pay a month is very appealing. Think close about it, if you receive $2000 a month in rental income and you only pay $1300 for your mortgage and upkeep AND your house is skyrocketing in value... Is that a good investment?

***Cons in Pre Construction Real Estate Investing***

* You Need Money to Make Money - for pre construction investment real estate is so sought for developers are demanding a higher percent for down payment. Often times developers want 10-20% of the property sale price as a down payment, also just to hold your spot (a reservation) often requires among $2000-5000.

* Not Every Project is a Winner - The master downside to investing in pre construction real estate is with so many projects popping up it’s hard to find the most profitable investment. after all at the current time most pre construction investments will make you money it’s important to do your due diligence and research the developer AND the management company. Make sure your real estate bucket shop has your best attentions at heart, many investment brokerages only focus on a handful of projects where they make the major commission.

* Money for Nothing - One reason that some people stray from pre construction investment real estate is the simple fact that they do not feel easygoing marketing a property that they can not see the finished product. Remember, when you’re going to buy pre construction investment real estate it usually hasn’t even been started yet. This tends to scare non-professional investors as spending that much money for them is usually an emotional buy, the seasoned investor understands that the reason they are getting the price they are is for it’s in the pre development stage. If the property was hitherto finished the price would be more.

If you have any questions on Las Vegas or Florida pre construction investment real estate feel free to peruse our other articles on Ezinearticles.com or visit our official website: http://www.investrealestate101.com

Wondering what developments I’m recommending to my clients? Give me a call and I’ll give you FREE real estate investing advice. I’ve been dealing in strictly investment and second home real estate for over 19 years specializing in Las Vegas, Orlando, and Florida pre construction.

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