How Our Pre construction Investment Program Works and Why It Works.
PreconstructionPrograms.com was created for investors, by investors. By being investors ourselves, we knew there had to be a way to profit from preconstruction homes in high growth areas like Florida without the traditional 10% - 20% down ... but how?
First we knew that profitability was crucial for everyone involved, land developers, home builders, financing banks, and especially the investors.
Now after years of trial and error, we are finally able to offer investors an opportunity to buy preconstruction homes in the fastest growing state with no more than $5,000 or Less down. With such a low out of pocket expense, we have allowed our investors and investment groups the ability to leverage up to $300,000+ in real estate with less than 2% down. That's a huge difference between the traditional 10% or 20% down which would equal $30K to $60K down.
Our real estate investment opportunity is designed around three factors.
Factor One - The Area. What we have learned after years of evaluating hundreds of areas and communities is that you must have high growth and high appreciation. How do you ensure that? You look for what we have learned to call a "Big Event".
For instance in Hernando County Florida, (known for its laid back country feel and beautiful rolling hills) the "Big Event" would be the new $850 million Sun Coast Parkway. The completed parkway now connects all of Tampa Bay and it's surrounding areas with direct access to Hernando County. Before the parkway was completed, Hernando County laid dormant more than an hours drive North of Tampa. Now with the completion of the Sun Coast Parkway, drive times between Tampa and Hernando County have been cut in half and Hernando County has now started to grow leaps and bounds both residentially and commercially. With a "Big Event" like the Sun Coast Parkway, there is now a huge growth demand for housing.
That is the type of "Big Event" we look for when putting together the factors needed for a profitable real estate investment opportunity.
Factor Two - The Home Builder.
Once we have pinpointed an area to target, we now need to find reputable builders to work with. In order for our preconstruction opportunities to work, we must have the lowest possible build price per square foot while still building a quality product. By us having the backing of many real estate investors and real estate investment groups, we are able to leverage our buying power when negotiating with home builders. For an example, in Hernando County, we negotiated a buy price at roughly $75 sqft with a well established builder that ranked 7th in overall pulled permits in Hernando County last year. This builder also offers full 1/2/10 year home warranties standard on every home built and a 10 to 12 month delivery schedule.
Factor Three - Investor Financing.
This last factor is truly the most difficult factor to secure. Please understand that before a bank is willing to lend money. They must absolutely believe the project is going to work and in return is a good risk. The banks must have faith in the area (high growth & appreciation), the builder (reputable, quality work, on time), the price (price per sqft, land cost, etc), and the real estate investor themselves (decent credit history and ability to repay the loan). Over the years, we have developed relationships with banks that believe in our projects and understand the needs of real estate investors. We know all investors have different finance needs and we have secured banks willing to offer multiple lending options on all our preconstruction opportunities.
It doesn't stop there. You can be assured that our team is consistently looking and researching dozens of new areas, builders, and banks to provide our investors and clients with the best possible preconstruction deals in the country.
If you have any questions, please refer to our "Frequently Asked Questions" or contact us by clicking here.
The above steps provide a reasonable estimation of the investment process; however, each particular transaction is unique, especially since each Investor is unique, based upon credit history and market conditions. FIP does not guarantee any specific time-frame, costs incurred, quality of services provided, or results from this investment process. Hopefully, this information will help you, the Investor(s), to make a reasonably informed investment decision for your future success.