Investing In Florida and Las Vegas Preconstruction Real Estate

Preconstruction real estate investing is a fast and low risk opportunity to make a substantial return on your initial investment. What is really important to remember is that very few companies deal with preconstruction real estate and even less deal with a large selection - here's why:

Less Money

The investor is the one who profits large off preconstruction investments; brokerages, on the other hand, usually make a smaller percent on preconstruction because they are in such high demand from serious investors.  Since this issue exists you'll hear so many brokers say it is impossible to get preconstruction unless you have the connections. I find this hard to believe, no one can get you on the list.

Time consuming

In order to sell preconstruction investment real estate in Florida you have to constantly research new up and coming developments that are not advertised anywhere. This research can take hours every week calling and researching these planned developments and because the projects are all word of mouth, brokerages need a large network in the industry to get in on the most profitable opportunities. Many Las Vegas and Florida brokerages just don't have the man power or time to do the research or the vast network in the industry to find all these hidden opportunities.

Timing is of the up most importance

Preconstruction real estate investing is a very fast moving market.  If you wait even a day in investing in a project chances are you have missed out on the available opportunities and this frustrates many new agents.  This delay causes most investors to hesitate towards preconstruction investments.

Delays in Payments

The most prevent factor of why most brokerages do not commonly sell preconstruction investment real estate is because it takes so long to get paid compared to traditional real estate investments. Since agents are selling units so early, before the ground is even broken, payment is significantly delayed; in fact payment can be delayed for up to two years.  This is also why many brokerages only deal with a small handful of preconstruction projects, if they deal with any of these sure profit opportunities. Although, by only offering a small amount of projects, the Las Vegas and Florida brokerages can negotiate quicker payment on those projects.  This accounts for the strong emphasis these markets put on these properties even if they are not in the best interest of the client.

The Bottom Line

Bottom line is that in this market you have to be very careful who you invest your money with. Many companies have their needs above the clients, with this in mind a single big ticket sale allow many companies not to need referrals or returning customers to stay profitable.

Remember, when in search of Florida investment real estate chose a brokerage that has a large selection of both preconstruction and phase one projects.  Also, make sure they do not pressure you into one of their flagship developments because this is where they can make a higher percent off the sale.

If you ever have a question about a specific preconstruction project or development in this market, particularly the Florida and Las Vegas markets, feel free to contact YAERD at 1-877-923-7370.  I am here to give you my honest advice on any project in this market.

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