I have the opportunity to invest in a new townhome development. The offer was presented to me by a friend who is actively engaging in real estate investments. I’ve never done anything like this and I don’t know what questions to ask Or what I should be looking for. At this very moment there is no structure built, just land. If this were you and someone asked for $10,000 to invest in a new townhome development what questions would you initially ask? What homework would you do before considering the offer?
Keep in mind the the only information I have is that the offer is there if I want to get involved.
I would think it is a scam. Or it is not worth the risk. For $10K I am not sure how much return you would be making. It may not be worth the the risk.
I would ask what security measures they have in place to protect my money.
I would ask for all legal documentation of their company and proof they have done it before with success.
That would be a start.
I would ask for a projected profits calculation etc. etc.
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