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What about Pre-Construction?

Discussion in 'North America Real Estate' started by scansco, Sep 3, 2008.

  1. scansco

    scansco New Member

    I am actually here in the US. What are the groups thoughts on buying pre-construction, empty land, subdivisions and such for their investment potential?

    This question would hold for US and international.

  2. StarCross

    StarCross New Member

    We're involved in pre-construction right now. We haven't run into any "roadblocks" as of yet and are looking to make a nice return on our investment.

    I think we have to change our minds about what we're to do with that land before we develop it and we're going to do just that. There is a lot of potential to make an incredible market that will benefit the environment right now, we just have to do it.
  3. StarCross

    StarCross New Member

    preconstruction only with energy deed restrictions

    Energy restrictions will insure a profit and plenty of tax credits

  4. johncis

    johncis New Member

    I'm all for it.
    Land has fallen in price far more than properties
    And a lot of the land that was pre registered as development should still have the building permits attached
    I came across a development north of Orlando that has permission for 250 properties and already has the road and utilities infrastructure plus 5 show homes already built for less than $3m

    1 year ago a custom builder I have had dealing with on Reunion Resort was quoting me $190 per sq ft to build a luxury home he has come back to me just a couple of weeks before christmas and offering the same build for $110 so on a 4900 sq ft home I will be saving $400k

    So I think I will hold out to middle of nxt year and see what I can get then
    Last edited: Jan 6, 2009
  5. RL20R

    RL20R New Member

    Just read the contract on how long they have to build some of these new homes have a clause giving them 2 yrs and it does take them 2yrs.

    And don't let greed carry you away with something that seems unbelievable.
  6. johncis

    johncis New Member

    Could you get me a copy of the contract?

    If so I will PM you with my details

  7. RL20R

    RL20R New Member

    Just a thought on Reunion, a house came up for sale there this week and I am sure it was for under $400,000. That is a steal at Reunion but remember the HOA fees are large and could be considered as another mortgage except you never get to pay it of.
  8. johncis

    johncis New Member

    That depends where it is
    If it's in the homestead I would not touch it at that price there is at least three on that part of Reunion I could offer 300k for and they would bite my hand off.

    But agreed there are some bargains to be had but not yet six more months should be time enougth

  9. RL20R

    RL20R New Member

    Yes I agree about 6 months things should be bottoming out.
  10. Kevin Burke

    Kevin Burke New Member

    ...and as a Florida lawyer I can say that many of the Florida pre-construction contracts which supposedly obligate developers to complete within two years can go many years longer ... the developer can argue that its performance was frustrated or made impossible and the contract remains valid against the buyers.
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