When Microsoft first started, it gave shares to all of its staff. At the time, no one could possibly know the full potential that the company had. As it became publicly traded, and then grew to become one of the most well-known and largest software companies in the world, it made many people – from Bill Gates to even the lowliest janitor – very wealthy. Did you think about investing in Microsoft when its stock was trading at a very low rate? Those who thought about it but didn’t invest are likely frustrated with themselves over missing the opportunity to invest in something while it was still small and watching it grow… while the investment grows, too.
Preconstruction real estate investing is a similar opportunity: invest while the ground is still barren, before anyone has started work, and watch the real estate development grow, as well as the investment that you put in.
Preconstruction real estate investing, the opportunity that comes with investing in developers to fund the building of large real estate developments like condos and resorts, is unlike other investments.
With bonds, you simply put your money in, get regular payments, and then get your money back at the end. Not very exciting. It’s incredibly safe and there is little return. Preconstruction real estate investing is different.
With stocks, you invest in a company on the stock exchange, and if the price is higher when you sell it than what you bought it for you, you make money (and the reverse is true, too). Preconstruction real estate investing is different.
Preconstruction real estate investing lets you do the same type of due diligence that you might expect to do with stocks, and because you’re investing in something that can be seen and touched (that is, a physical asset), some consider it as safe as bonds. In fact, it’s arguably safer than bonds because bonds can lose money if inflation goes up, whereas a preconstruction real estate investing opportunity rises with inflation.
As for return, preconstruction real estate investing is often better than stocks because you can watch your money grow while you watch the building go up. Chances are very good that your investment is already worth more the moment that the first bulldozer digs into the ground. And chances are very good that your investment climbs as the building goes up. And the more popular the development is to the end-buyers, the higher your preconstruction real estate investing return will be.
So what do you need to do? Of course you’ll want to make sure that you are investing with a reputable preconstruction real estate investing company that comes with a good track record of successful developments. And you’ll want to shake the notion that the best investing is in stocks and bonds. Because many people are finding that there’s better money to be made “on the ground floor”.
Useful Links:
