Want To Be Profitable In This Real Estate Bubble? I’ll Show You How In Just Three Easy Steps

Written by Chris Anderson, PhD


Continued from page 1

You need to realize that this imbalance can be corrected byrepparttar price dropping (as many claim), rents escalating, or combinations of both. In addition, it may not correct as demonstrated in many markets for over 20 years! So your choice becomes “do I sit onrepparttar 125272 sidelines” or “do I learn how to invest safely in this fast moving market.” This is a personal choice that you have to make in regards to your own personal style.

Want to know an additional little secret? Like in stock trading,repparttar 125273 secret to any successful investing is learning how to control your risk relative to your potential gain. It’s that simple! As an example, there are preconstruction real estate deals out there where an investor can risk less than $2,000 and can still make a potential reward of $50,000 or more. Ifrepparttar 125274 investment does not work out, then all that investor is out isrepparttar 125275 $2,000 initial risk. Knowing that little piece of information can potentially save you hundreds of thousands of dollars! For investors that participate in real estate investments on a continuous basis, they always try to educate themselves onrepparttar 125276 risk potential first followed byrepparttar 125277 potential for gain.

The bottom line is that if you follow these simple steps, you can also learn how to invest in markets that other people perceive as dangerous bubbles!

Chris Anderson is a leading authority on preconstruction real estate investing. Get his 4 day e-mail course and a 33 minute video free today! Visit http://www.GetPreconstructionProfits.com


Dramatic Profits From Preconstruction Real Estate Investing

Written by Chris Anderson, PhD


Continued from page 1

Oncerepparttar developer getsrepparttar 125271 needed licenses and permissions and hasrepparttar 125272 legal authority to sellrepparttar 125273 units, you can enter into a hard contract. Atrepparttar 125274 time of signingrepparttar 125275 hard contract, you have to make balance up-front payment. Usually,repparttar 125276 upfront payment is 20% ofrepparttar 125277 total cost of completed unit but can be more or less. You can pay by a direct deposit withrepparttar 125278 builder or through a letter of credit. After signingrepparttar 125279 contract and making an up-front payment, you do not have to make any other payment untilrepparttar 125280 unit is ready and you closerepparttar 125281 deal and take possession.

However, before signing a hard contract you must be careful because by signing it, you are entering into a binding commitment to purchaserepparttar 125282 unit, failing whichrepparttar 125283 builder can forfeit your deposit. In some states like Florida, you have a 15-day rescission period during which you can withdraw fromrepparttar 125284 hard-contract without any obligations. Before signingrepparttar 125285 hard contract, you should check to see if you haverepparttar 125286 rights to assignrepparttar 125287 property to a qualified intermediary. If you would like to play safe, take a professional opinion onrepparttar 125288 terms and conditions of hard-contract for preconstruction purchase.

The construction phase normally lasts for 6 months to 2 years (depending on project type) and you have an expiration date onrepparttar 125289 hard-contract. Ifrepparttar 125290 builder fails to completerepparttar 125291 construction and handoverrepparttar 125292 possession, you can claim for refunds and will have no legal obligation to buyrepparttar 125293 unit. Duringrepparttar 125294 construction period asrepparttar 125295 building would move towards completion, there is typically several price increases but of course, you cannot absolutely count on that happening. If you are able to find a suitable buyer prior to closing, you can resellrepparttar 125296 unit and claim your profits on closing ofrepparttar 125297 deal.

If you have not assignedrepparttar 125298 contract untilrepparttar 125299 completion, you will have to closerepparttar 125300 unit. Closing in preconstruction process is similar to all real estate deals and you have to makerepparttar 125301 balance payment with additional payments likerepparttar 125302 association fee as disclosed inrepparttar 125303 "Good Faith Estimate".

There are a lot of things to consider when entering into a preconstruction investment and we strongly encourage you to learn allrepparttar 125304 do's and don'ts. Hopefully this article has given you an overview ofrepparttar 125305 process.

Chris Anderson is a leading authority on preconstruction real estate investing. Get his 4 day e-mail course and a 33 minute video free today! Visit http://www.GetPreconstructionProfits.com


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