| Although the preconstruction real estate investing | | | | preconstruction market, it's a good idea to go |
| option has been around for many years and is | | | | through a real estate brokerage that specializes in |
| nothing new, it just recently became well known | | | | preconstruction real estate developments. There |
| to the masses and real estate investors all over | | | | are several reasons why using a quality brokerage |
| the world are scouring the web for the best new | | | | can help you, but most importantly, they know |
| construction and preconstruction real estate | | | | the developers and can discern between which |
| projects in areas where real estate prices are | | | | can ensure quality and which are "accident prone". |
| skyrocketing (Baja Mexico, Costa Rica, Bulgaria, | | | | 3. Research the Developer's Past Projects - If the |
| Cabo San Lucas, Orlando). While the sudden | | | | developer has had huge delays in past |
| increase in demand has influenced many legitimate | | | | preconstruction projects, it will probably happen in |
| developers to offer more projects and | | | | the next several projects. Remember that your |
| developments, it has also seen the emergence of | | | | time is money - even if you get your full deposit |
| many ill-prepared developers into the market. | | | | back 2 years later, because of constant delays |
| Here are just a few ways you can properly | | | | you may lose hundreds of thousands of dollars |
| screen your preconstruction real estate developer | | | | worth of wasted time and resources. |
| / brokerage and make sure you are not signing | | | | ***Note*** As real estate developers have |
| with a less then reputable developer: | | | | learned that the word "preconstruction" alone can |
| 1. Read Small Print - Before investing in a | | | | sell out a project, they have created a new trend |
| development, be sure not to fall victim to the | | | | in the industry by labeling every phase of the |
| curse of the small print. Avoid ending up the | | | | project a "preconstruction phase." Often these |
| subject of those horror stories about real estate | | | | are low-quality condo conversions or condotels |
| investors who are suckered into scandalous | | | | that are not worth half the asking price. BE SURE |
| contracts with real estate developers. Some real | | | | you are buying in the actual preconstruction phase |
| estate developers will not let you sell the property | | | | before purchasing!!! |
| until years after it is finished and others will charge | | | | Just remember, the bigger the preconstruction |
| huge penalties if the property is sold early. | | | | real estate market gets, the more you have to |
| Always, have an attorney look at every contract | | | | watch out for fly-by-night developers and |
| before you sign anything. | | | | unethical brokerages that don't have your best |
| 2. Find a Preconstruction Brokerage - Unless you | | | | interests in mind. |
| are VERY well connected in the area's | | | | |