BiggerPockets

How have you guys come across good preconstruction deals and what have you done with them (ie moved in, sold the contract, rented it out, etc.)???

Any good preconstruction deals out there?

There are, you just need to know the area and comps real well

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Our office is currently doing a lot with pre-construction projects and new homes at the moment, and its amazing hwo the prices start to rise as the project nears complettion, so getting in on the ground level is really the key. Within months your property could increase in value by as much as 20%.

I took a couple to see various pre-construction lots and the wife said " but this is just a heap of dirt" ! Which it was. But a few months after when the roads were in, that piece of dirt was worth 20% more, and by the end of the year when the villa's are completed, the value will be even more.

Savvy real estate investors understand the value of investing at pre-construction prices, but for " regular" home buyers, they see a " heap of dirt" .

When you get a good pre construction deal, its best to hold it and sell when the prices goes after completion. But in the Caribbean, there is also very good rental income potential, since tourists and short term visitors (3-12 months) are always looking for vacation homes to rent.

So you earn in two ways:
1. Immediate increase in property value
2. Good passive income from renting

Getting in on pre construction deals is a good idea! And there are some good ones out there.