This is one thing that's been on my mind lately.
Seems like a lot of people decide going into real-estate is a solid decision, and for whatever reason go directly for the cheap, dilapidated shit holes. They'll pick up some 60 year old piece of junk for $50k, dump tons of money, time, and resources into it, then rent or sell it, with hopes of making good profit some time down the road. I have no idea, but I do know it sounds like such an absolute nightmare that I will never attempt it.
However, the best real estate investments I've ever witnessed are when people get in during the beginning development stage. Land is purchased, permits granted, architectural design complete, maybe construction has started, maybe not. That type of thing. Whether it's a house in a new sub-division, condo in a high-rise, maybe a multi-building complex, or whatever.
For example, I knew one guy who purchased 4 condos in the same complex for about $200k each just as they were breaking ground. A few years later once construction was complete, they were selling for $600k a unit. I don't know about you, but that seems like a pretty easy $1.6 million profit to me, especially considering there's no real work involved. It was pure investment. No fucking around with faulty electrical, cracked foundation, or any of that shit.
The bad part of this is, especially depending on country you purchase in, the project sometimes simply never gets completed. They just run out of money or whatever, close shop, and instead of getting your unit(s), all you have is some steel beams and scaffolding to look at. You can try to recoup via the legal route of course, but more often than not, you spend 3 years and $50k just to find out you're not getting a penny back.
Anyway, have any of you went this route, instead of buying older properties. How has it went? Any stories to share? Any tips to find good properties that are just coming up to purchase?
Seems like a lot of people decide going into real-estate is a solid decision, and for whatever reason go directly for the cheap, dilapidated shit holes. They'll pick up some 60 year old piece of junk for $50k, dump tons of money, time, and resources into it, then rent or sell it, with hopes of making good profit some time down the road. I have no idea, but I do know it sounds like such an absolute nightmare that I will never attempt it.
However, the best real estate investments I've ever witnessed are when people get in during the beginning development stage. Land is purchased, permits granted, architectural design complete, maybe construction has started, maybe not. That type of thing. Whether it's a house in a new sub-division, condo in a high-rise, maybe a multi-building complex, or whatever.
For example, I knew one guy who purchased 4 condos in the same complex for about $200k each just as they were breaking ground. A few years later once construction was complete, they were selling for $600k a unit. I don't know about you, but that seems like a pretty easy $1.6 million profit to me, especially considering there's no real work involved. It was pure investment. No fucking around with faulty electrical, cracked foundation, or any of that shit.
The bad part of this is, especially depending on country you purchase in, the project sometimes simply never gets completed. They just run out of money or whatever, close shop, and instead of getting your unit(s), all you have is some steel beams and scaffolding to look at. You can try to recoup via the legal route of course, but more often than not, you spend 3 years and $50k just to find out you're not getting a penny back.
Anyway, have any of you went this route, instead of buying older properties. How has it went? Any stories to share? Any tips to find good properties that are just coming up to purchase?
