FREQUENTLY ASKED QUESTIONS
 

Why do so many Real Estate investors elect to purchase properties in the "pre-construction phase?"

One  reason is the limited location and availability.  For example, highly attractive locations sell out quickly and opportunities to purchase property within these areas are often very limited.  Not too mention the considerable savings on the the actual purchase price.

 

Why are pre-construction prices so low?

In many cases, developers and builders need the pre-construction capital in order to complete the funding for their entire project.  Construction lenders also like to see some pre-construction activity prior to extending loans to complete an entire project.  This is why properties are often discounted in this phase to generate operating capital.

What factors contribute to the appreciation of pre-construction properties??

Many factors contribute to the increase of sales price.  They range from location to other area factors.  In some cases it is even related to supply and demand.  Ninety percent of the time, developers raise prices once they've had the grand opening of their model.  Additionally during the pre-construction phase, builders do not exactly know what actual material costs they will incur, and if their are any increases in material prices to come.