Deposit For Homes Not Yet Built?
does anyone know if this is a worthwhile technique for getting automatic equity? in my area -riverside co.- i have heard of a few people that put 5 grand down to secure a price and by the time they are built they've made 20 to 30k. they then turn around and l/o or sell. seems good but are they just blowin' smoke? any info would be greatly appreciated. especially, who would i contact? builder, agent, etc. thank you t.d.
I am considering buying a pre-construction condo from www.investinwaterfront.com
I think that's what you are talking about, check out Greg's website, he has some great information realted to what you are asking.
Best,
Susana
This kind of thing is really speculating, not investing. ( Not that there is anything wrong with that......) You need to make sure you know your down side risk and can tolerate it.
I buy pre-construction all the time and believe if it is properly done can have great rewards. I would NOT say you will get automaticequity - at least not for borrowing purposes.
Some speculators ( me included) sell before they have to close. Some speculators (me included) wind up having to close becuase they could not flip the condo before closing.
Buying preconstruction works best in major communities where there will be pre-programmed price increases and it works best if keeping the condo (or house) is part of your plan anyway.
Gregg
_________________
Gregg Fous
Investor/Developer
"Under-promise and over-deliver"[ Edited by GFous on Date 03/03/2004 ]
hey, thanks to both of you for the info. great website- especially the forum. if anyone knows of the same types of deals here in riverside county please let me know. i do plan to keep it. unless, i can get two. thanks again greg and susana---tracy