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QUOTE (YoungRealty @ Dec 2 2010, 08:45 AM) Don`t invest at the beginning, it takes too long to get any return on your investment. As the building comes close to closing, search out people who cannot close to financial constraints and buy them out. It allows for a few things, 1. you will know the market at the finish stage, 2. you can typically get a better price, and 3. you can see returns on your investment much sooner.
This strategy works in a flat or declining market, as people can`t close. In a rising market, speculators will be able to sell their units at the new, higher price, and won`t be forced out.
Godfried`s strategy will work in an upward market. Neither is wrong, but they`re right for different parts of the cycle.
As for University City, these units were a good deal (and sold out immediately) because they were sold for well under their current fair market value.
Michael
This strategy works in a flat or declining market, as people can`t close. In a rising market, speculators will be able to sell their units at the new, higher price, and won`t be forced out.
Godfried`s strategy will work in an upward market. Neither is wrong, but they`re right for different parts of the cycle.
As for University City, these units were a good deal (and sold out immediately) because they were sold for well under their current fair market value.
Michael