Hi I am new to real estate investing. I have signed up for the Quickstart Program in a couple of weeks. Right now I have no down payment to put on a property. My realtor suggest buying a pre construction purchase (in Grande Prairie). She says by the time it is ready ( 3 maybe 5 months) the market will be up and I will make money on the equity. And I should use the equity on the property to buy my next property. Is this a good way to start. Any suggestions would be great!
pre construction purchase
- Thread starter ronda
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lanedry77
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Hi Ronda,
I`d highly recommend waiting until after the quickstart event before taking any action, since it`s so close.
What your realtor is suggesting (the condo) is not investing, but rather it is speculation. You would be buying on the hopes that the condo goes up in value, and that you can sell it for that increased value.
Remember that there are likely many other people who have purchased pre-construction in the same complex, and a number of them may sell as soon as they get posession. You know what happens when supply goes up and demand doesn`t, right? The price of the condo may actually drop below what you paid for it, and then recover once the surplus of units are absorbed by the market.
At quickstart you`ll learn, at least a little bit, about some strategies for using your real estate expertize to help others profit by doing co-owner (aka: Joint Venture) deals whereby they put in the money, and you put in the work.
If it`s the Vancouver event you`re heading to, it`s less than three weeks away - I`d hold tight until then.
I hope that helps a bit,
David.
I`d highly recommend waiting until after the quickstart event before taking any action, since it`s so close.
What your realtor is suggesting (the condo) is not investing, but rather it is speculation. You would be buying on the hopes that the condo goes up in value, and that you can sell it for that increased value.
Remember that there are likely many other people who have purchased pre-construction in the same complex, and a number of them may sell as soon as they get posession. You know what happens when supply goes up and demand doesn`t, right? The price of the condo may actually drop below what you paid for it, and then recover once the surplus of units are absorbed by the market.
At quickstart you`ll learn, at least a little bit, about some strategies for using your real estate expertize to help others profit by doing co-owner (aka: Joint Venture) deals whereby they put in the money, and you put in the work.
If it`s the Vancouver event you`re heading to, it`s less than three weeks away - I`d hold tight until then.
I hope that helps a bit,
David.
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- Sep 23, 2007
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Hi Ronda;
I agree with David. While`s it`s possible that you`ll be able to turn a quick buck by buying pre-construction and selling before you take possession, it`s a bit of a risky game to play. What happens if the market doesn`t rebound as quickly as you`d anticipated? Will you simply sell it at loss and move on? Or are you in a position to make the mortgage payment until the market appreciates? Are you willing to rent the property out? Will the property cashflow? These are all questions that need clear answers before you move forward.
I agree with David. While`s it`s possible that you`ll be able to turn a quick buck by buying pre-construction and selling before you take possession, it`s a bit of a risky game to play. What happens if the market doesn`t rebound as quickly as you`d anticipated? Will you simply sell it at loss and move on? Or are you in a position to make the mortgage payment until the market appreciates? Are you willing to rent the property out? Will the property cashflow? These are all questions that need clear answers before you move forward.
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Hi Ronda,
As a child you went to classes in your school, then you wrote some tests and became ready for the next grade.
So now you will go to school again (Quick-Start) and then you will be ready to begin investing.
If you jump in before you will be relying on your luck and not your knowledge.
Hope that helps,
As a child you went to classes in your school, then you wrote some tests and became ready for the next grade.
So now you will go to school again (Quick-Start) and then you will be ready to begin investing.
If you jump in before you will be relying on your luck and not your knowledge.
Hope that helps,
- Joined
- Sep 18, 2007
- Messages
- 1,230
Ronda,My very first RE purchase was a prebuilt townhome and I was in a similar situation as you. I had someone (my Dad) willing to loan me the dnpmt and the realtor gave me similar advice to yours. This was late 1989, I took the realtors` "advice" and plunged in with a 6 month closing. What ensued was the sharpest and longest real estate crash in 25 yrs, shortly after I lost my job.... My life was hell for the next 3 yrs. Long story short I paid all my bills on time did a lot of other things and I`m back.
DON`T DO IT
and don`t take "advice" from someone trying to sell you something - look behind the curtain.
If you want to fly a plane do you put one together and try it out?? No you seek out experts at a flying school and you have them teach you. Go to Quickstart and have the patience and discipline to at least save for a small downpayment.
Ed R
DON`T DO IT
and don`t take "advice" from someone trying to sell you something - look behind the curtain.
If you want to fly a plane do you put one together and try it out?? No you seek out experts at a flying school and you have them teach you. Go to Quickstart and have the patience and discipline to at least save for a small downpayment.
Ed R