I talk with my good friend and new father Brian Persaud, who is an author as well as the leader of one of the top realtor teams in the Toronto area explains in this episode. We talk about investing in pre-construction builds and how you can profit from doing that yourself.
Whenever you invest in real estate, you want to be sure that you’re going to receive a return on your investment in a timely manner to give you many opportunities to have time with your family and use your money as a tool to provide for them. Investing in pre-construction properties can help you do just that.
Brain talks about what goes into buying a pre-construction build, whether it be a condo, townhome, or a detached house. Walking through the details and steps that will lead you to profit, Brian talks me through the length of time it would generally take from the when you first invest to when you actually get the keys to the building.
With condos, as Briain explains, the investor can release it to the public for showings, floor by floor. During this time, the property value and rent increases because you now own the newest and shiniest condos in the area. However the same can be done with townhomes as well.
When you use the strategy of buying pre-constructed homes or condos, you avoid putting in your equity or renovations into the home and as soon as you put a down payment on the build, you just watch the property go up in value, which increases the eventual revenue coming into your pocket. The best part is, you can do this countless times and continue to watch your investment grow in value before you get the keys in your hand.
Do you like investing in something knowing it’s going to be the next best place to rent out to others? If you do, check out this video for more tips on this real estate investing strategy.