Being a Landlord:
Did you know that 95% of all real estate seminar attendees never do anything with the information they receive? Why is this? From experience we know that many investors shy away from becoming landlords or buying real estate long term because they are afraid of the responsibilities. Here are the top three reasons why people shy away from becoming a landlord of why they want to get out of the “landlording" business:
- Issues with repairs (older homes, tenants who break things)
- Tenant problems (late rents, law suits, vacancy issues)
- Property management challenges (irresponsible, don’t keep homes rented)
There is a better way of getting a return on your hard-earned money:
it’s called “pre-construction investing"!
What is pre-construction and how can you invest in pre-construction? Before you panic and think you have to become a developer, read on, you may be surprised at how easy it is for anyone to invest in pre-construction.
The Meaning of Pre-Construction Investing
Pre-construction investing simply means “cutting out the middle man, " buying a raw piece of land and building the home yourself.
Investing in pre-construction has quickly become a new and lucrative niche for investors who want to have their hard-earned money invested against collateral rather than the stock market or mutual funds. Many have discovered self-directed retirement plans and prefer to invest their retirement funds into real estate or do a 1031 exchange into pre-construction.
Top 5 Reasons to Invest in Pre-Construction
While there are many reasons why pre-construction makes investing in real estate easy, the top five reasons to invest in pre-construction are as follows:
- No Repairs
- No Tenants
- No Property Management Needed
- New Homes are much easier to sell than existing homes
- High Returns
How You Find Pre-Construction Properties
There are many ways to finding pre-construction properties. The most obvious ones are to consult with large developers such as KB Homes, Centex, Pulte, etc. , in an up and coming area. Many investors find it challenging to find a large builder who will work with investors. An alternative is to hire your own builder and find your own construction financing, which may take a little more work than most people care to put in; however, it’s well worth the time! The easiest is to find a company who is specializing in working with investors only. Remember, when your goal of investing in pre-construction is to “get out" before the home is completed, your most lucrative way is to find a company does the work for you so you don’t have to!
Read more about pre-construction investing at RealEstateAbundance.com.
About the Author
Françoise Merlo is the president of Dynamic Investment Solutions LLC. She is a public speaker and seminar leader and has been teaching real estate investment strategies for over three years. Dynamic Investment Solutions LLC is a developer of custom built properties in the rapidly growing State of New Mexico and her program is designed strictly for investors.