The Key Ingredient To Increase Preconstruction Profits By Over $20,000

One of the greatest preconstruction investing issues that I hear from individual investors is that they can't get access to what they believe are good projects. Regardless if the preconstruction project is a beach condo, a townhouse, a single family home, or even land investment, individuals are finding that many restrictions are being placed on them by developers. In addition, prices are continuing to runaway. So given all this, how is an individual investor supposed to excel in this environment? Read on and find out!

Suppose the investor had the ability to march right into the developer's office and demand that they should give you at least a $20,000 discount, which now would turn a good project to a really great one. I mean, you're serious about your preconstruction investing. Shouldn't you be entitled to that discount? After the developer stopped laughing, they probably would suggest the investor find a path to their door.

If you look at this from the developer's perspective, they probably already have a marketing team in place to provide a steady supply of purchasers or investors. In this market, a single individual preconstruction purchaser/investor would have absolutely zero impact on anything the developer was doing or planning. Basically your request for a discount provides zero advantage in the preconstruction process.

So let's change this picture a little bit. Suppose you are a surgeon and you walk in with 15 other doctors and tell the developer that you are very serious about this preconstruction project and probably others that the developer has on the drawing boards. Ok, this is possibly a horse of an entirely different color for the investor group. Having a single group come in and moving a block of 15 units in one fell swoop may be something of interest to the developer. This is especially true if the developer has time pressures to get this preconstruction project moving forward.

In this real estate environment, with lots of investors, it may (or may not) be possible for this group to get a discount but there may be several other ways that this developer might chose to help the group. For example, the developer could assure the group that they will definitely be able to get 15 units in the preconstruction project; for many locales, even that is a major feat. In addition, the developer could assure this group that they may get first crack at another phase, or another project altogether. If the developer is wise, they will find some way to work with this group and treat them well.

A great example of the buying power of groups can be found in a new project at www.getpreconstructiondeals.com. With over 8,000 preconstruction subscribers to our database, there are potential methods to form relationships with developers where it is mutually beneficial to both the developer and the investors. This pooling of "buying power" is really the genesis of our Mastermind Group.

In this new preconstruction project, the developer has agreed to provide a $15/Sqft discount if 20 investors make their reservations in a short period of time. For a 2 Bdrm, that is a discount over current selling prices of $21,570!! Simply because 20 people made the effort to work together on a preconstruction investment of mutual interest. In addition, this is great for the developer because with that number of new preconstruction reservations in place, it helps them accomplish their goals more quickly. This is an example of the proverbial win-win situation.

So how can you take advantage of group buying power in your next investment, regardless if it is preconstruction or another type? First, you have to find a place where other like minded people visit. Possibly this is a local real estate club, a group of co-workers that like to invest together, participants in an on-line forum, or even as part of groups like ours. Regardless of how you accomplish the goal, think in terms of how you can best put together your team and increase your buying and negotiating power.

Dr. Chris Anderson is a co-founder http://www.GetPreconstructionDeals.com and is referenced in many venues including the New York Times and USA Today. Learn how you can become a part of his investing group at GetPreconstructionDeals.com.

---

Day Trading the SP Futures with Initial S/R and the NYSE TICK

For instance, if the market moves up in the first 20 minutes of trading, touches the initial resistance zone, and then turns down, this implies that a good tradable downtrend move is likely... Read More

Preparing to Invest: How to get started

Investments can be a source of great potential earnings. The two most common reasons that a person does not invest are either they do not have the money or they do not know... Read More

Variable Annuities

You know all the articles you read about annuities that have extremely high fees? And the ones that people lose a lot of money in? Well, these are better known as variable annuities.... Read More

Investing & Online Stock & Share Trading- The Stock & Share Markets are Booming But Be Warned

I had the pleasure of being invited on a friend's yacht to sail in a race on Sydney Harbour yesterday. On board, as one of our motley crew, I met a top ranking... Read More

Hedge Fund 101 - Make Money with Hedge Funds

Investors are always looking for the best investments that will yield the most profit. Any investor who can afford the extra cost should consider investing in Hedge Funds. Hedge Funds were started in... Read More

An Economical Retirement Investment Plan

The practice of economy, directed toward a retirement investment plan in the stock market, is in itself a source of great revenue. It is the art of making the most out of every... Read More

Creating a Financial Future--Putting Your Plan Into Action Part 2

Real Estate can be a useful tool for investing. The simplest real estate investment is not truly an investment, but a cost-reduction ? that is owning your own home. Buying rather than renting... Read More

Everybody Wants to Know How to Invest

Those unfamiliar with the process of making and managing investments often have more than a few trepidations about investing in general. They figure that, since they do not know how to invest, they... Read More

Are You An Investment Dummy Like Me?

I am good at a few things. I can certainly market well and I consult with others about how to bring more attention to their products and services on the internet for a... Read More

Trading Tips No 3: Online Trading and Investing: Buy, Hold, and Hope

So you have learned how to trade the markets by mastering a few trading tools like Moving Averages, Channels, Stochastics, MACD, or RSI - that is a great accomplishment achieved by only a... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #4

Can you concisely summarize your investment philosophy in a few sentences? My experience is that most people can't. The quotes that follow are diamonds that offer a real powerful education in the world... Read More

Risk and Reward

If you are doing your own investing in the stock market, what would be the first question you would ask yourself before you make any trade or investment? If your answer is how... Read More

Planning Starts with the Basics

When developing a plan for your finances, the toughest question often is: "Where do I begin?" Before investing in stocks and bonds or buying life insurance, before implementing any change or making any... Read More

Shop More, Save More for College Gimmick or Reality?

The man sat in a chair beside a dressing room at a Tampa, Fla. maternity store. "That one looks great," he says to his pregnant wife. "I really like that one."Just as his... Read More

IF - The Wonders of Investing

If it seems as if all investors are selling, who is buying?... Read More

Beginning Investor - Investment Terms

Over the course of the past two months, readers have brought to my attention that there is a steep learning curve for investment terminology. That's why the focus of this month's Beginning Investor... Read More

Creating Momentum with Options - Pro and Cons of At-the-money, In-the-money, and Out-of-the-money

To create momentum in your options trading you need to understand the advantages and disadvantages of at-the-money options, in-the-money options and out-of-the-money options.An at-the-money option has both advantages and disadvantages over stock and... Read More

Gold and Silver Maple Leafs Get New Packaging

Gold Maple Leafs and Silver Maple Leafs are receiving packaging makeovers, changes clearly mandated by investor disfavor with packaging that the Royal Canadian Mint has used since the coins were introduced. Gold Maple... Read More

Straddle Strategies in Option Trading

The straddle strategy is an option strategy that's based on buying both a call and put of a stock. Note that there are various forms of straddles, but we will only be covering... Read More

Economic Survival in the 21st Century - the Three Key Questions to Ask

In this "special report", I want to pose a few important "philosophical questions" to my readers. Firstly -- our Federal Reserve Chairman, Alan Greenspan, addressed the effects and implications of our aging population... Read More

The Dreaded Direct Question

(Please have a glass of water within reach before reading this article.)Your personal financial planning is the topic of discussion here today, but not quite yet. First I would like to bring your... Read More

Choosing A Financial Advisor

With so many financial advisors trying to woo you with their qualifications and experience, how do find one you can trust your finances with? 'Trust' is the keyword here, as you will depend... Read More

Wit and Wisdom on Money, Wall Street and Success - Part #1

I love to collect quotes as they concisely promote a philosophy which is readily understandable.In my 25+ years of investing I have collected hundreds of quotes related to Wisdom, Wall Street and Success.... Read More

The Real Cost of a Bad Habit

What is the value of a good habit? Think of some daily habits, like brushing your teeth, or buckling a seat belt, or flushing. All of these habits have value important to some... Read More

Maniac Investment

Let's first understand what maniac means. According to Webster a maniac is "mad; raging with madness; raging with disordered intellect". You don't know anyone like that, do you?There is a book that is... Read More

Five Sure Fire Way to Secure Your Financial Future

"You can be poor when you're young, but you can't be poor when you're old." That was the tag line used some years ago in a financial services television commercial.Truer words were never... Read More

Oil and Gasoline Price Uncertainties

The Light Crude Continuous Contract hit an all-time high at $70.85 a barrel, while Unleaded Gasoline Futures spiked 50% or $1 a gallon on Tuesday. However, oil closed the week at $67.57 a... Read More

Rules for Simplified Employee Pension Plans better known as a SEP Plans

A SEP is a special type of IRA. Under a SEP plan the employer creates an IRA account for each eligible employee, hence the name SEP-IRA. A SEP is funded solely with employer... Read More

Coca-Cola - A Value Stock?

There has been much talk lately about Coca-Cola and its potential as a value stock ? as it now spots a dividend yield of 2.6% (which is the highest dividend yield since the... Read More