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Pre-Construction and Close-out Sales Michael Danhour
Builders, developers, realtors, and investors claim, "Pre-construction and close-out sales are often the best place (and time) to get in on investment deals."
In pre-construction sales, the builder or developer has spent a lot of money getting the product ready for market, often using other peoples' money - money that accrues interest. Sometimes they need pre-sales just to get the construction loan. The best way for a builder/developer to get the loan, or get their product moving is to sell several units in short order - at a discount.
Close-out sales are offered at a discount because the remaining lots are usually the builder/developer's profit. They want to realize the project's full profit, then re-invest and focus energies on the next money making deal. Though investors purchase a product in a fully completed project, they still can purchase units at or below pre-construction prices... | |
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