Bulk pre-construction investing is the latest trend in secure, high profit real estate investing. Investors enjoy guaranteed below market terms, including discounts, principal protection, and preferred exits.

Whether you're planning for retirement or are simply looking for a high-return strategy, this business model fits any portfolio. Whether you have a value or growth, risk averse or aggressive profile, bulk preconstruction delivers real estate opportunities without the risks and hassles of traditional real estate purchasing.

The Benefits of Bulk Pre-Construction Real Estate purchasing:

• Guaranteed discounts of 15%.even if the market goes down

• Principal protected in a 3rd party escrow account

• 10 to 1 leverage without tying up your credit lines

• A fixed downside risk with unlimited upside potential

• No maintenance-no hassles when 'flipping' the contract

• You are always in control of your own unit

• No long-term commitment - typically you're out in 18 to 24 months

• All you need is between $30K and $75K liquid

Let me be your Strategic Partner! Contact me to learn more about this investment model. These projects sell out fast - call Michele Hailey today for the best selection 1-702-292-6916

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Below is an in-depth description of the benefits of bulk pre-construction purchasing.

 

When you buy real estate under this model, you place your deposit in a 3rd party escrow account. That's security even the most risk-averse buyer will appreciate. Your purchase agreement clearly establishes that you receive your entire deposit plus interest in the event that a development is not completed.

Your deposit is simply used to show lending institutions that there's a market for the projected units and that there is a last resort buyer. This makes it easier for the developer to secure the construction loan. Once the loan is issued, the developer is obligated to resell your unit under a pre-determined re-sale strategy which gives preference to you over comparable units in the building.

 

We search the country to find the right developer, the right project, in the right real estate market. Our collective buying power has been used to build many of the most sought-after communities in the country - developments that have appreciated by as much as 20% during the construction phase alone.

We only accept projects that meet a target return threshold of 40-90%. Assuming the discount, the deposit amount, and that the project is completed and you resell prior to closing on the unit, your pro forma returns after fees would be within 40-90%.

 

Because we purchase large blocks of units of a particular development during the pre-construction phase, developers offer us below-market pricing a discount, even if the market subsequently softens. This allows buyers to make a spread on an entire unit of an average of 15% the first day they put down their deposit.

 

Let's say a condo developer is planning to build 500 units. We contract purchase of 200 of those units for 15% below market pricing.

A luxury, 3-bedroom condo that everyone else is buying for $500,000 is only going to cost $425,000 for a pre-construction buyer. The developer requires that you put down a small deposit to secure your unit. In this case, that deposit is $42,500. That means your $42,500 initial deposit has built in equity of $75,000 the day you sign the contract.
 

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Your $30,000 to $50,000 deposit is placed in 3rd party escrow account. Your principal never leaves that account and cannot be touched by the developer or by anyone during the construction period.

Because most buyers plan to resell the property prior to closing, we build preferred resale strategies into the contract. Under this scenario, buyers generate a return without having to make payments on the unit or sell their own inventory. Our projects typically take between 18 to 24 months to complete. In many instances, these properties have appreciated in value during construction. The condos are sold at a substantial profit that is then split between the syndication and the buyer.

 

Through this model, a $42,500 escrowed deposit secures $500,000 in real estate, without a mortgage, because the properties are sold before construction is complete.

On the first day, 10% deposit controls $500,000 in realty which we purchase at a discount for $425,000. Your deposit therefore has built in equity of 150% on the very first day. That's the power of leverage, one of the keys to boosting your deposit's ROI.
 

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We source the opportunity and negotiates the terms that allow you to access these real estate opportunities with at guaranteed below market terms. You, however, own and control the unit at all times. While most buyers choose to select the developer's resale strategy, as with any other real estate, you are able to choose what to do with the unit. And Michele is only a phone call away to discuss any strategic options regarding your purchase.

 

Using the model, wholesale realty buyers can make money even if the real estate market softens. Under the terms of our agreement with developers, buyers receive a contractually-guaranteed price adjustment to the extent that property' prices fall.

For example, if other similar units in the building depreciate by $10,000, our buyers receive a dollar-for-dollar adjustment on their purchase price before they close on the unit, i.e. a $10,000 retroactive adjustment on the original purchase price. Do the math and you'll see that this results in an even greater percentage discount than if the market remains flat.

So, whether the market stays flat, goes up or goes down, buyers can still generate profits.

 

You don't tie up your deposit or limit liquidity for years and years. Typically, buyers see returns within 18 to 24 months, sometimes in less than 12 months. Once you've earned that nice return, you can opt for the next available project or move on. You're in; you're out.