Preconstruction real estate investing is the art of buying properties, usually condos or townhouses, at a very early stage in the construction process. Profit is acquired from then selling it months or sometimes even years later at a substantial difference.Preconstruction investments are always going to yield big money for the real estate company because it is where you invest money with a developer who is in the early stages of developing a property. The money you give up front purchases the villa, condo, or house before it’s built. After the property has been developed, the land can be used by you (rented, lived in, etc.) or sold. The benefit to the buyer is that he or she is usually offered the chance to “lock in” the purchase price of the lot or home well in advance of the time the deal will close escrow. This price on these units that are “reserved” early is often significantly lower than the price at which completed units will be offered once they are ready. For you to be successful, you need to know the ins and outs of the preconstruction business and its deals, you need to know its mechanics, and you need to be a wide, cautios and savvy investor. Find a project that has promise. Many people are now investing clubs in condos as they get to be exclusive and yield promise is high.

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