Comments on: How to invest in pre-construction flips

By: Adventures In Money Making

Adventures In Money Making — Tue, 20 Mar 2007 03:24:00 +0000

if you do choose to buy there make sure that the price/rent ratio is good.

if you can't sell it make sure the rent covers most of the mortgage payment.

don't go out and buy a $600,000 house that rents for $1650!

By: Anonymous

Anonymous — Tue, 20 Mar 2007 02:59:00 +0000

I appreciate your comments Mike, & thanks for affirming my intitial belief. I was recently pitched & excited about the opportunity but knew that the timing was bad, the thought of quick & easy money was very tempting in a quick 9 months… i was wondering if you have any experience in preconstruction investing or speculating as u call it…over the past few years where it has successfully worked.

By: Mike Jackson, CPA

Mike Jackson, CPA — Mon, 19 Mar 2007 06:26:00 +0000

A recipe for disaster

Pre-construction “investing” would be more accurately named pre-construction speculating”. Why do you think that there are such appealing returns available? Familiar with the risk / return ratio? Essentially it states that higher returns may be associated with investments with greater risk. Why? because the investment is less likely to pan out. However, when investments do pan out, the payoff is greater than other more stable investments. THERE IS NO FREE LUNCH. If there is potential for greater return, there is potential for greater risk. See further analysis of this post at http://www.capitalcritic.wordpress.com.

-Mike Jackson, CPA

By: Anonymous

Anonymous — Wed, 07 Mar 2007 05:34:00 +0000

recently houston & austin texas has many lux & urban condo’s under development; is this a good time to do a pre-consctruction flip? if not; are there any places now or is now just a bad time…

By: JMB

JMB — Sun, 10 Sep 2006 23:11:00 +0000

Thought I would share my recent experience with pre construction flippage;

http://www.hedgefunddomain.net/2006_07_01_hedgefunddomain_archive.html#115258065063529694