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Posted over 8 years ago

High End Development and Scared Investors

My partner and I have been developing high end SFR's within the Los Angeles and Orange counties of southern California. We have over 45 years combined experience and have been showing our investors huge returns. We go after off market properties, get investors involved, we get the construction loan and build the homes and then give our investors their portion of returns and principle back. 

It amazes me how many investors are scared of development. Sure their is higher risk. However, with higher risk comes greater return. I personally think flipping homes is more risk because you do not know what you are going to get inside your walls, land etc. Development is from the ground up and you know everything is brand new and what you put in to the home. With higher risk usually comes higher reward, but, if you are really really good at what you do, then you always have multiple exit strategies, do your due diligence over and over and over again, and make sure the numbers work. Oh, by the way, we usually always sell our homes before we even break ground. We usually accept a non-refundable deposit from the buyer, so they can come in and customize their colrs, tiles, marbles, etc... Now if we show you this has been done with our past projects, have current offers for our current homes that have not been built yet, and you as an investor knows that pretty much takes 100% of the risk away, then please tell me why you are still scared to invest into development.

I for one just don't get it. 


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