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Fundamental analysis gathers a number of facts together about the investment, including history, industry, decision-makers, demographics, market analysis, etc.

Technical analysis looks at trends of recent purchases of similar investments to try and extrapolate what the future will hold.

Now here’s the deal: Technical analysis is easily automated and therefore incredibly popular among stock market, commodity, forex, and real estate investors. Unfortunately, too MANY people put too much stock in the results of technical analysis. Frankly, without fundamental analysis, technical analysis falls short.

The best advice I can possibly give you, even if you decide never to invest in international real estate like my team does, is to do fundamental analysis. Build a solid foundation of fundamental analysis and you’ll find the technical analysis will be understood easily, quickly, and effectively. Ignore it at your own peril!

So let’s look at each of these types of analyses to determine what you can do to learn about an investment.

Fundamental analysis should look at some of the following information:

• Who is the property developer?

o What is their track record with other properties in the past?
o Do they turn a profit?
o Do their investors walk away happy?
o Do people invest with them again and again?
o Do they finish projects on time, on budget, and within promised parameters?
o Will the developer be able to purchase building materials, bring them in, and have the labor to build while maintaining affordability? (These are 3 big areas that can increase a price and put a project in jeopardy).

• Where is the property?

o What has happened in the area to suggest that it could grow? (For example, why did the developer choose to build there instead of somewhere else in the world?)
o What are other properties around it selling for? Is this area growing in popularity? How do you know? Will it grow more? When will it reach capacity? What factors would you look to in order to feel that it has reached its capacity.
o Has interest been strong on those other investments? Why or why not?

• What is the property to be used for?

o Is this something that will be supported by others in the area? (For example, will a rental location be filled with staff because the area is growing quickly and needs lots of people? Or as another example, will a hotel get booked up because the government is working hard to market the area?
o Is the property appropriate for the demographic who it will be marketed to?

• Competition

o Who else is building right now? What is their track record? (You want to see this because if just one never-heard-of-before builder is building, you might not be as attracted to a project as you would be if several big-name builders were all creating projects in the same place).
o Who else is investing right now? Is it the Donald Trumps of international investing? There’s a good chance you’ll want to get in on the same deals they do.(did you see that Mr. Trump is investing one year behind me in the same area we are...LOL...got to love it....being ahead of him by one year internationaly...not the first time or last....LOL...)(that one is for you Chris)
o What will the “end user” competition be like? Will there be dozens of buyers clamoring for a single unit? That will increase prices and potentially earn you a good return. However, if there is not enough demand, the result would be the opposite.

These are just some of the questions you want to research when doing your fundamental analysis. They are hard questions and require some hard work, which is why a lot of people skip this step altogether.

The second, and more popular (but, in my opinion, inferior) type of analysis is technical analysis. Technical analysis looks at historical pricing and tries to identify patterns which are then forecast for the future.

What makes this method inferior is that pricing information is not always readily available, nor very accurate, on projects like this. After all, if it’s international investing we’re talking about, just what historical pricing do you use? Perhaps you could look at other projects to help you form a baseline but that number will never be completely accurate because:

• No two projects are the same: to get the best number you need to find an impossible-to-find project: one that is built in the same place by the same developer during the same market conditions in a nearly identical location. Easy task? Not at all!
• Even looking at a similar project can skew the numbers because a completed project is experiencing a different point in the market than a project which could hit the market in a few years… when demand is different.

However, if you manage to find a few projects that are similar, and wish to draw an average price from those in the hopes of creating an approximate baseline, here is what you’ll need to do:

Chart the project along a timeline with the baseline or average cost of several similar projects. Watch your project for similar movements and if your project makes drastic changes that are different from the other projects, then use that as a warning flag for you.

The most important thing you can have is information. You all know me and frankly, you can never have enough of it. Every piece of information should inform your opinion and you should act on it by doing the following:

1. “Does this piece of information change my opinion of the risk level of the project?
2. “Does this piece of information change my opinion on the reward level of the project?
3. "Do I still feel that the risk/reward ratio is within the acceptable parameters I’m comfortable with?"
4. "Given my answer to question 3, should I hold the line or should I implement an exit strategy right now?

About the Author: Charles Denney II; International Real Estate investor is the founder of Resinto Property. He brings the world’s most beautiful and luxurious vacation property, second homes and retirement destinations world wide within reach of the everyday investor and family through education, large volume purchasing power, a strong knowledgeable team and empowers average people to invest with confidence in international real estate. He feels strongly in the right of everyday individuals and families to be informed, to control their own portfolios, and to take charge of their financial destiny.

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Real Estate Investing Offshore!

If the sorry performance of today's investment markets has you wondering where to turn to make a profit you should consider the opportunities opening up in international real estate. I see a large number of unprecedented factors which indicate to me that international real estate could be a big upwards mover for the remainder of this decade and well into the next. If I am correct, and I think I am, the biggest profits will go to the first ones to perceive and invest into this market. But don't let that make you act imprudently. It is probable that even the prudent, more cautious investors are going to have plenty of time to make their move, because the conditions that are currently making moving overseas a more viable and intelligent option have both a fast and a slow evolution. ...and those factors are here to stay.
The migration to rural/resort real estate now well established in the United States has already extended everywhere on the face of the globe; which is why offshore resort properties, island properties, ranch properties, and their like are now being sought. In addition there are over two dozen cities around the world that are also attracting expatriate investors. Interestingly not everyone is headed for the sticks, which means the trend is not one of mere 'escapism' or 'refuge seeking,' but one of actual relocation.
Buenos Aires, Budapest, Prague, Hong Kong, Bangkok, Singapore, Santiago, Santo Domingo, Dublin, Panama City, Rio de Janeiro, Cape Town and others are all getting an influx of expatriate investors, (in addition to the tried and true expat destinations, such as Paris, Rome and London.)
Resort property or city property, offshore real estate is now getting a hard look by more investors with each passing day.

Real estate, no matter where it is, has remained one of the preferred investments for longer than any other investment in the world. Real estate has actual intrinsic value. As long as there are human beings there will be a need for real estate, and while real estate can fluctuate in price, its core value keeps it from being a mere 'craze' or 'fad' for any continuous period of time.
When it is overvalued it will fall back to its true value, when it is undervalued, it will eventually rise to its true value, ...but it will never fall to absolute zero except in unique areas and under unique conditions - - such as areas subject to natural or man made disasters or to areas that become crime-ridden slums. ..And yes, there are reasons why real estate rises in value and falls in value that are government caused. People vote with their actions and lately, with their feet. When a place becomes intolerable, people leave. The reasons cited by most people for getting our of the USA are: oppressive Federal legislation, a lack of morality in government, a lack of privacy, racial tensions, bad schools, and usurious taxation.

Just thought this would be a good read for everyone....

Charles

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Mr. Green

I have 7 post and/or answers to other peoples ?? here on this site that I think you should take the time and read. I think this will get you started in the right area. When your finish reading I know you will have more ??? This is all I do; I am 120% full time investor in Pre-Constrction and I would be more then happy to answer your ???
Post here or just email me.

Have a great weekend!!

"life is only what we make it, so make it great"

Charles

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What is Preconstruction Investing?

In this post I’m going to show you what preconstruction investing is, and what it isn’t. It’s easily confused with other types of property sales (like timeshares, for example).

I’ll break it down for you and give the simple explanation and I’ll show you how it’s like other types of investments (because there are similarities).

Most importantly, after helping you understand what it is, I’m going to lay some of the groundwork so that in another post I can show you how you can make money from it.

The term “International Preconstruction Investing” can be confusing to people. Many people’s first impression is that it’s referring to a timeshare purchase or it’s referring to high risk properties in countries you’ve never heard of before. Some people may consider that to be international preconstruction investing. But it’s not.

Essentially, the international preconstruction investing I’m talking about is where you invest money with a developer who is in the early stages of developing a property. The money you give up front purchases the villa, condo, or house before it’s built. After the property has been developed, the land can be used by you (rented, lived in, etc.) or sold.

Let’s look at it a little more closely.

It’s international because we are willing to look anywhere in the world for investments. The US has some hot markets and some not-so-hot markets. So do other countries. Why limit ourselves to just one country – as good as it is – when we have the whole world stretches out in front of us!!!

The economies of countries (and regions within those countries) are not simple independent, but rather interdependent. Like the environment, things in one country or region affect things in other countries or regions. To be truly successful at understanding and profiting from international preconstruction investing, that’s a skill to be developed. Or, you at least want to find an investor or mantor who understands the concept of interdependence. Of course, being an international investment is not without its risks and in the upcoming post I outline those risks and tell you how to manage them.

It’s preconstruction because that’s where the money is. A simple rule of any kind of investing (let’s use the stock market for an example) says that a stock with a skyrocketing price is going to be popular and therefore should be bought. But if you’ve spent time in the stock market, you know that prices skyrocket because a stock popular. The real winner in the stock market is the one who bought Microsoft or IBM or GE at $5.00. The remainder of investors who bought these stocks near their current price will likely make money but not nearly to the degree that the original investors will have made.

In the same way, preconstruction investing is like buying those stocks at $5.00 and selling them when they are high. You’re buying property that is being developed in places that are going to be hot markets in the years to come. Buying post-construction investments won’t bring you the kind of returns you can get by buying preconstruction.

By investing I mean, of course, that there is a balance of risk and reward and at the end of the day you need to measure one against the other and decide if it’s right for you. All investments have some kind of capital requirement and investors should have the expectation of making money from that capital.

In an industry report I outline some of the scams that other so-called “international investing companies” offer and show you how those investments are not actually investments. Often there’s capital and risk, but very little reward.

So, international preconstruction investing is about buying property in soon-to-be-hot markets and enjoying the appreciation in value that comes from developed property in a popular location.

I hope my description of International Preconstruction investing has not been misleading. It may sound too simple. Let me be frank: it’s not simple. International Preconstruction investing is not about pointing to a spot on a spinning globe and saying “let’s look for property there.”

I make my money the same way you make money: by investing up front and exercising my renting, living, or selling options on the back end.

I hope this has answer the over 30 emails I have gotten asking to find out more informaion. If you still would like more information please ask away!!! I would be more then happy to answer your questions, but not 30 emails at a time....LOL

How does it compare to other types of investing?

As you’ve seen already, the principles are the same to other types of investing: there is some capital outlay, there are risks, but there’s also the expectation of a reward.

All investments break down to just two kinds: ownership-style investments and “loanership”-style investments.

Ownership investments are also sometimes called growth investments. These include your home, your portfolio of stocks, and your collection of fine art or fine wines. The idea with ownership investments is that you buy low and sell high if you want to make money. The challenge of this kind of investing is that there are fluctuations in the market that you have to ignore and you need to hold the investment for a while before you can realize any gains. The risk of this kind of investment is that the value will decrease instead of increase.

Loanership investments are also sometimes called income investments. These include corporate and government bonds, Treasury Bills (“T-Bills”), and Certificates of Deposit (CDs). The idea with loanership investments is that you loan your money to someone (a company or the government or the bank) and they pay you back your principle and interest over time. It’s slow and steady, and very predictable and reliable. The challenge of this kind of investing is that it does not have spectacular growth opportunities, like some of the more popular investments (think: tech stocks in 2000 and 2001). The risk of this kind of investment is that inflation will outstrip your returns.

Somewhere in the middle between the two types of investments are a few types that “straddle the fence.” These include some mutual funds, rental property, and – our friend – international preconstruction investing, too.

In each case, these “fence sitting” investments take the best of both worlds, providing you with the opportunity (in many cases, although not all cases) to earn an income on the growth of the value as well as a regular income.

Mutual funds will hold bonds and stocks, for example. A house that you own down the street that you’re renting out will give you current income and future growth-related income when you sell it. And shortly, I’ll show you how international preconstruction investing uses both income and growth principles in what I call “The 3 Wins” to give you 3 opportunities to make money.

How else does it compared? Well most investment I see profit margin are too low, the risk level is too high, the time horizon is too long, the control I have over the investment is too little or zero.”

Profit margin: I believe that you need to have a substantial profit margin before something is worth investing in. Investment advisors I talk to who convince people to invest in stocks or mutual funds say that you can probably expect a 12% to 18% return for safe money. Some real estate markets around the US and Canada returns anywhere from 10% to 25%. These aren’t bad investments… I believe there’s better and I believe that you can get MUCH better when you invest in international preconstruction investments.

Risk level: There’s going to be risk with any investment, but I believe risks should be investigated thoroughly and managed properly. I see many stock market investors who invest in something because their neighbor’s brother’s friend’s cousin heard that a stock could go up. This hearsay style of investing has (thankfully) diminished since the internet bubble burst around 2001, but this is still a common way to invest. To understand and manage risk, it takes experience, skill, and research just to start! I’m not saying that to scare you away from preconstruction investing, but rather to equip you so you can find experts to help you.

Time horizon: How long should you hold onto your investments for? Many espouse the long-term buy-and-hold principle of investing for retirement. This is not a bad idea, but it’s too bad that you have to tie up your money for so long. Others like the idea of flipping stocks like day traders, but this can be costly if you don’t have the experience or the guts to make tough calls! When you measure risk, many investment “gurus” say that the best time in the stock market is a long time, because the stock market constantly trends upwards. My feeling is, if I can find good investments with management risks that pay MORE than the stock market in less time, why wouldn’t I invest in those? A smart investor would. I believe in the principle: “for two investments of equal risk, a logical investor will chose the one with the higher return.”

Control: Stock market investing can be tough when you buy your 100 shares and even though you have a vote at a shareholder’s meeting, you watch the company make poor decisions and go-under. Commodity investing is even worse when you read about a rain storm that moves through the Midwest and demolishes a crop of whatever you had invested in. I like investments where you have some kind of control, including control to buy, control to sell; which you usually have with other investments but also…

o control to buy more
o control when to sell
o control how much to sell
o control to not sell but choose some other income-generating method

International preconstruction investing is similar to other types of investments in that it requires capital and there is risk and reward and in the growth and income description of investments, it tends to “straddle the fence”, giving you profit-making opportunities from growth and from income.

What’s the Next Step?

Think about your portfolio for a moment. Are you happy with your return? Does your portfolio give you the combination of profit, risk management, time horizon, and control that you want? I’m willing to bet that most readers wish that the profit potential was higher, and the risk management and time horizon were lower.

Think about where you are right now in all four of those categories… then think about where you’d like to be.

Once you’ve thought about where your portfolio is right now and what you really want from it, continue reading everything you can about investing, and find a great mentor.

How can I Make Money from it?

In this section I’m going to show you how I make money from international preconstruction investing and I’m going to show you how you can, too. This is not detailed step-by-step approach, that takes years of experience to master and I would be doing you a disservice if you closed this post and felt you could go out and find your own international preconstruction investment opportunities on your own. Instead, this is going to be a general overview to help you understand the opportunities available.

In this section, I will show you that you CAN make money in this type of investment, I will talk about how you can make money, and then I’ll finish off with a step by step instruction to give you an overview of how it works.

By the end of this post you’ll know that there is money to be made and hopefully you’ll be as excited as I am about the opportunities.

Can you actually make money from it?

Yes.

This is actually the hardest section of the post for me to write. I recognize that there are scams out there that promise a life of untold wealth but never deliver.

As a result, our internal judge is very wary about what we read or hear when it comes to potential income. Too low and the investment opportunity is not right for us. Too high and we feel that there’s no way that we can possibly earn that and therefore it must be a scam.

It reminds me of a famous story you hear in the marketing industry about a man who wrote a book several decades ago called “How to make $150,000 per year.” The book bombed. He asked around and learned that the title of the book offered a wage that was so outrageously high for the times and the audience that no one believed it was possible. So he lowered the promise on the title to “How to make $50,000 per year.” It was still a high amount for the times but it was much more realistically achievable by the audience and the book soon became a best seller. I have yet to discover whether this story is apocryphal or not, but it still relates a good message: you’ll only believe profit descriptions if they are not too outrageous. Therefore, this is the most difficult section of the book to write because it will make or break whether or not you actually decide to move forward in this kind of investment.

So, how much can you make?

I suppose you could make nothing, theoretically.

In some markets you could make between 10% and 25% but my experience shows that those markets are typically already developed, already hot or perhaps have started to wane in their popularity… and you can make that on both pre- AND post-construction investing in these areas.

With the kind of international preconstruction investing deals I do, I fully expect to make AT LEAST 50% return on my investment anywhere from 1-3 years. In that time frame, I can expect the development to be complete and the area where we’re investing will be starting to increase in popularity.

But I’ve also seen more… much more: 100%, 200%, 300%.

Has your internal alarm gone off yet? I suspect it has because many people who hear these figures say “yeah, right, no investment would be that much… and if it, the risk is probably tremendous.”

The reasons I wrote this post is show you some of the ways that this kind of income is possible.

I have been doing real estate investing for almost a decade and I make a very comfortable living from it… and I’ve made other people very comfortable as well.

How comfortable? I’m not going to tell you that I laze around all day by one of my three pools while I sip lemonade from a gold-plated cup. I work and I work hard, because I love what I do. I am no longer in it for the money. I love the deal and I love to work with people. I believe true wealth pushes beyond the dollar signs to include doing things you love, spending time with people you love, and making the world a better place. That’s why I do what I do.

I have purposely tried to avoid giving huge numbers and promising returns that will make your internal judge forget about this post and write me off. Keep reading and I’ll show you how that money can be made and what next steps you’ll want to take to start earning from international preconstruction investing.

How can you make money from it? PART I
It all starts with the one basic investment concept: buy low, sell high.

Here’s how: Developers don’t want to spend a lot of time marketing their properties to find investors. They just want to get enough money to build and then move on. That’s how they make their money. If they build on speculation and take years to sell the properties, they don’t like that: they’re builders, not Realtors and using a Realtor just cost too much. So they like investors but they like very large groups of investors even more because those groups buy up large parcels of the development from 200+ units in days – sometimes the whole thing – year or years before a shovel digs the dirt out of the ground. Whats what I do.

That’s not all I have found in the years I’ve been succeeding at this kind of investing is that there are actually several ways that you can make money from preconstruction investing. They include:

Buying pre-developed property and selling it when the price goes up during the development process.
Buying pre-developed property and selling it when the price goes up after the property have been developed.
Buying pre-developed property and renting it out to vacationers when the property is built.
Buying pre-developed property and renting it out to locals on a longer term basis when the property is built.

From this list I have developed something I call “The 3 Wins” style of investing that says that I won’t bother investing in an opportunity unless it gives me at least 3 ways to make money.

It simply follows the concept of a container with a hole in the bottom: if you pour water in the top and there’s just one hole in the bottom, only a little water (profit) will come out at a time. If you have 3 holes in the bottom, you’ll get far more from the container.

Good investors want to make sure that they can get good profit out of an investment but they want to have some choice in how they get that income. The properties I invest in must have at least 3 ways to profit, or the opportunity isn’t worth it.

How many of your current investments have 3 ways to win?

How can you make money from it? – Part 2
When people hear what I do, one of their first questions (after determining that I don’t buy timeshares!) is to ask, “How do you make money from it?”

Then they ask me, “Yes, but how do you make money from it?” Same question, but I know that they are now looking for more details. I told you what I told you to give you the big picture. Now let’s focus down a little and discover what I do in a step by step process.

Here’s how it works:

1. I have a team of economists and analysts uncover a market in the world that is currently quiet but will be hot in the near future. We begin the due diligence process, looking at…
• The country or region
• The developer and the developer’s plans
• The future of the country or region and how it relates to the interdependent influences of other economies
• The risks and potential rewards, the costs versus the benefits
• Ultimately: is this something I am willing to invest in?
2. Next, we contact the developer threw my list.
3. Then we purchase
4. Then, we wait.
5. In some deals, it’s as easy as waiting a week or two because the property will automatically go up as the developer begins and as the individual opportunities within that investment get bought up in a short time. Other times, it could be a matter of months… perhaps as long as 1 to 2 years as the developer completes the project. If you choose to sell before, you will still realize a substantial gain because of the growth of the property.
8. If you have held on to your investment during that time, you now have a couple options: you can put it on the market as a finished unit, or you can rent it out.
9. Get your cash out and start spending your money, or invest in another opportunity.

I have found that doing just 3 or 4 investment deals like this a year will produce a substantial enough income for you to do whatever you want.

That, in a nutshell, is what I do. I employ the very best people to do the analysis of the area: I’ve got economists on staff that looks at the regions we’re interested in and can do high quality, in depth analysis. When stepping out of the US you need to have a team like this I can tell you. I see so many people RUNNING to Coata Rico with out doing there home work. I have done mine and there is not a chance I would buy there.

On its own, the above process can make someone successful, but I would say get yourself a good Mentor to help you or someone that has invested in the area your looking.

What's the next step?

Look at your portfolio and at the person or company who is offering it to you and ask yourself these questions:

Do they do the due diligence you want them to do or are they simply working from a corporately mandated buy/hold/sell list?
Does your broker or advisor profit when you profit or do they get paid on a transactional basis? Although there are very strict rules monitored by the Securities Exchange Commission (SEC), your broker still does not truly care whether you make money or not because they get paid if you do what they tell you to do… and NOT if you make money. Brokers who are paid based on a percentage of your holdings at the end of the year are a better choice. Does your broker hold all the securities that they have recommended to you?
How many ways are you able to profit from your investments? One? Two? Three? Most investments have just one way and some of the better investments have two. Very few have 3 ways to win.

I’m not telling you to fire your broker and invest all of your money in international preconstruction real estate. But I am trying to show you that there are opportunities to invest more wisely than the current, popular methods.

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You’ve seen what the rewards can be. In this post I want to explain what the risks are. I’ll talk about 2 types of risk: the risk of investing and the risk of investing with just anyone who claims to be in international preconstruction investor.

I’ll show you how to manage the risks, I’ll identify which risks to worry about and which ones to ignore, and by the end of this post you’ll feel confident about stepping into this kind of investing to make money without worrying about losing your shirt.

What are the risks?

I’m glad you asked. Guess what: there are risks. If you ever hear of an investment opportunity – no matter what kind it is – that says it’s “risk free” then you should run (don’t walk) in the other direction. Unequivocally, that person is trying to scam you.

There are 3 kinds of risks:

1. The risk of investing
2. The risk of investing with the wrong people
3. The risk of not investing

I’m going to skip over “the risk of not investing” because there’s a very good chance that you don’t face that risk. If you’re here at biggerpockets.com right now, it’s likely that you’re thinking about investing. One of the risks of not investing is simply the loss of your cash holdings through inflation.

The risk of investing and the risk of investing with the wrong people are covered in the next chapters.

Potential risks you’ll face

I’m not going to say that this investment is risk free. No investment is. Investors face many risks no matter what investment they look at: these risks include such things as…

• Political risk
• Monetary risk
• Economic risk
• Foreign exchange risk
• Inflation risk
• Business risk
• Liquidity risk
• Interest rate risk
• Default risk
• … and others.

Not all investments face all these risks, but all investments face some of these risks and are more susceptible to some than others. (Stocks, for example, may be more susceptible to business risk than bonds because bonds, while different types of stocks may be harder to get rid of than other types of stocks and thus subject to liquidity risk).

In International investing, you could be faced with political risk (the risk that political decisions – including unrest – could result in the investment being lost), foreign exchange risk (the risk that fluctuations in currency valuations will mean lost money), and liquidity risk (the risk that you can’t sell the property).

When you invest in these things on your own (without any experience to back you up) you will definitely see these risks coming into play! But when you find a high quality investment company or mentor who will help you, these risks can be minimized and managed.

International preconstruction investing is a lucrative opportunity but not without its risks.

The risk of investing with the wrong people

Aside from the investment risks associated with investing in international preconstruction opportunities, there is another risk that makes life challenging. It’s the risk of investing with the wrong people.

When I tell people what I do, the very first thing that many of them ask is, “is this timeshare?”. I can sense that they’ve started to get their defenses up, afraid that I’ll offer them an “unbelievable opportunity” that they will someday later regret.

I don’t do timeshares. Unfortunately, those that do, also sometimes promote themselves as international preconstruction investing companies. And aside from timeshares, there are other companies that make offers and do deals that cast a long shadow on the industry I work in.

I can tell you that I’m not one of those people… I can do that until I’m blue in the face. So will the other guys, I’m sure.

So what I’ve done is created an industry report that exposes some of the scams you should watch out for and identifies how you can avoid them. I also give you a checklist to help you separate the legitimate people from the scam artists.

You can find it here: on biggerpocket. I encourage you to read it and use it. It could mean the difference between making a lot of money and losing a lot of money.

The One Secret You NEED to Know to Be Successful in international preconstruction investing:

I’m often asked, “why do you give this information away? Can’t someone come in and rip it off?” I suppose they could, but in this end of this post I’ll explain the one thing the separates myself from many others.

Whether or not you choose to start invest in international preconstruction investing, I’m going to give you the one critical secret that you will want to make sure you know before you invest with ANY international preconstruction investment company or start working with a new mentor.

The one secret your going to need on your side

The one secret that I believe that can make you successful over most all others is to team up with someone that has:

A global network of contacts

You will need a list of contacts that is literally priceless or make sure your mentor has LARGE list of:

o Developers
o Property owners
o Analysts
o Economists
o US-based attorneys
o Attorneys who are based in the areas we invest
o Translators
o Chartered jets
o Managers of 5 star hotels
o Happy investors who have made money

When the investment is sound, that’s a “first to market” advantage that any smart investor would crave!

Why do I mention this? As a warning! This post is meant to help inform you of your potential success in the area of international preconstruction investing, but it won’t make you an expert. I believe you need a great team with experience, and most importantly, a global network of contacts.

What's the next step?

You now know a little more about international preconstruction investment opportunities and you will be able to make your own decisions when it comes to finding a company or mentor that…

o Invests where you invest
o Doesn’t charge brokerage fees or finders fees
o Has the experience and contacts you need

0 Votes

Can you give me a little more information in what your looking for beside's 1st Phase PRC?

In the US out the US?
All cash deal or low downpayment?
Beach front, vacation hot spot, golf haven, single family homes, ????
What kind of turn around time are you looking for 12 months? 2, 3, 4 Years??

"One must ask alot of questions to get the answers they need"

Charles

0 Votes

Forgot about your Trailer ???

I have seen the property stay at the same price, but most of the time I have seen 20% or more much, much more. Also remember that some times its a full year before they start and by the time they get the trailer there they have sold 20-40+% of all the units. I have also seen 400 units sell out in days and there is nothing but trees and there not starting for 2 years.....

Just like the last deal I work on the condos were $170K with 20% down payment and all that was there was trees and no road, ele, water, gas and so on, but 10 months later the trees were taken out (price now 200K) 3 months later ele, water, gas are there(price now 214) now the road is in 1 month ago todays price $240K with 25% down payment at the end of the development the property will sell from $300-$320K all within 18-20 months. So as they move ahead the prices get higher and higher.

Think about it like in a new place that there building lets say 800 new homes in your city. The first phase sells for $180K lets say 2nd $220K 3rd $260 4th $290K and after a short 36-48 months they have gone from 180K to $300K+. Its the same thing..........

"A person has to travel the world to search for what thay need"

Charles

0 Votes

First your not going to have a mortage until the property is finish and you can get title. So there is no mortage payment until you get the title, but if you have a 2nd on your personal house to make the down payment like most people do you will have a 2nd on your personal home.(tax break)

How does it work? Well each deal is differnt so you will have to ask. I have seen all cash deals up front, 10% today with 20% payments every 60 days, to 50% down and the rest the day of closing, and 25% with no payment unitl finish; so each deal is differnt and you just have to ask.

Now if you can get to the developer like I do and cut out all the brokers/Realtors you will get a better deal. I have seen that in some places the broker/Realtor gets payed 10-15% (WOW) on your 40-50% down payment. I dont know about you but that is alot of money!! Not bad if your a broker/Realtor, but I am a full time investor so I need the best deal I can get.(sorry not slammming on the brokers/Realtors we all need them)

I just say do your home work....ALOT of home work!! Try to find someone that can help you or mentor you in this. Just like all Real Estate deals when you first get in your going to need someone to hold your hand before you walk and run.

Hope this helps....if you have time I have another post here I think you should read "Preconstruction Investments some Problems & Solutions" and if you still need more help let me know, but ones again DO YOUR HOME WORK!! Ask alot alot of questions

"There are no dum questions; just dum people for not asking"

Charles

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Find Quality International Preconstruction Investments Without Getting Ripped Off?

INTRODUCTION

Most investors will tell you that real estate is a sound investment… one of the best you can make. There’s a fixed amount of land, it has many uses and therefore many potential users, there’s a solid history of appreciation, and it’s not easily misplaced! Real estate can be a high quality investment when chosen carefully, with professional help and due diligence. Resourceful investors who are looking for a quality investment with well-managed risk are starting to look outside of the US with greater frequency as they realize the interdependence of international economies… and the opportunities that result from that interdependence.

Unfortunately, like walking through the forest in the dark, the world of international preconstruction real estate investing can be a difficult world to navigate just like any other real estate deals. Inexperienced investors looking to put their money into global opportunities often end up with more questions than answers and throw up their hands in despair:

•Where do you start?
•Where are investments to be found?
•Are these countries safe to travel and invest in?
•How can you know if these investments will actually return any money?
•What laws are necessary to know?
•What if they speak a different language?
•What are the tax implications?
•… and many others.

Every question is one more potential stumbling block for the new investor… and a way for a less-than-honest person to scam that new investor. Investors who are new to the international preconstruction real estate market should feel concerned about who they do business with because there are many ways that scam artists can take advantage of them.

This report will explore the problem of scams and rip-offs in the international preconstruction investment industry and talk about how the inexperienced investor can overcome them with improved information and resources.

PROBLEMS

As with any investment opportunity, every legitimate opportunity seems to spawn a scam. That’s true not just of international preconstruction investing but of every investment: from Ponzi schemes to worthless stocks, from Enron scandals to confidence men selling the Golden Gate Bridge… both inexperienced and seasoned investors must cast a wary eye on the opportunity and the person offering it.

What kinds of scams exist in the international preconstruction investment industry? Here is a sampling of some of the most common:

1. The developer selling the real estate has no right to sell it. If you are an inexperienced investor who shows up in another country, all you have to go on is the good word of the person showing you the land. Does the developer have a right to sell the land you’re looking at? They may… but they may not. If you’re new to the preconstruction investment industry, you better know how to do your “due diligence” to ensure that the investment is safe.

2. In some places, a developer can build on the land if they cannot find the owner of the land… but the owner is given 10 years to claim the land back from the time the developer starts the claim. Once the developer has sold you the villa, condo, or house, they have their money and can walk away. Now imagine what would happen if the real owner of the property comes forward within the 10 year timeframe? Unfortunately, you would lose your investment, the owner would get their land back, and the developer would be off spending your money. You need to make sure the developer will stick around to finish the job and your going to get a clean title.

3. You are offered a preconstruction investment that seems legitimate and it comes with passive income opportunities in the future. Unfortunately, this type of investment can be a timeshare sales approach thinly veiled as an investment opportunity. How can you tell the difference?

4. You own the villa, condo or house but will never own the land. When this happens, you are only leasing the land for so many years. This is called a “leaseback” purchase and at the end of the stated time, your lease will expire and the property will be owned by someone else! That’s not an investment!

5. The developer uses very poor building supplies. The result is that your villa, condo, or house looks great for the first couple of years… but then falls apart soon after. Your investment will plummet unless you start pouring money into the home to fix it up. Are you able to return to your investment property and put in the time to rebuild it?

There are many more horror stories from international preconstruction investors just like here in the United States in all areas of real estate, who thought they found “the diamond in the rough” and invested their money, only to discover that one of the five situations listed above had occurred.

Real estate is a fantastic opportunity with very good returns and well-managed risk. With some experience, preconstruction real estate investing can transform how you invest. Instead of gaining your experience through the “school of hard knocks”, consider these solutions:

SOLUTIONS

Just because there are potential pitfalls and scams in the preconstruction real estate industry just like any other, you can still find great investments and great help. Use this list of suggestions to help guide you:

1.Use clear thinking. Although returns in preconstruction investing can be very good, be wary of returns that sound too good to be true. As well, be wary if you think you found the one deal that everyone else has missed. If the beachfront condo you’re investing in is $60,000 while every other condo in the area is $200,000, there’s probably a reason.

2. Find someone to do the due diligence for you. Due diligence should come from experience. Newer investors may not know what to look for on the international market in order to find the best investment. International economies are interdependent of each other… that means you need to find someone to help you do your due diligence who understands that your preconstruction investment is not being built in a vacuum, but as part of a global economy. You need seasoned analysts and economists who have their finger on the pulse of the global real estate market to help uncover truly valuable investment opportunities.

3. If you are traveling with a group of investors, make sure that you are not paying as much as you would for a vacation. Some companies pass themselves off as preconstruction investment companies or over seas property agents, brokers and so on..... but they are really just tour operators. If you’re paying a few thousand dollars to see an investment opportunity, think twice! It’s expected that you’ll pay some money for a tour, but you need to ask yourself if the company is profiting from the opportunity itself or from bringing you there! Avoid spending more than $2000 for a trip.

4. Find a real estate investment company that has experience and a network of contacts. A sure sign of a fly-by-night operator is one who does not have any deals “under their belt”. The company you choose to do business with should provide tours that run fairly smoothly and offer no surprises. They should have a well-developed network of attorneys and translators, and be able to speak confidently about the developer that you will be visiting. They’ll know what to ask and they’ll know who to ask. They’ll know if the developer has a good reputation and will build with good materials. They’ll know if the developer has the right to sell the land.

5. The real estate investing company you work with should outline more than one way of profiting from the investment opportunity. If you can’t find at least 3 ways of profiting from a piece of real estate, the investment itself may not be worth your time and the company you’re working with certainly isn’t.

6. The international preconstruction real estate company you work with or mentor should also be investing in the same property you are investing in. If they are simply showing you the property, and not putting any money into it, they may have a different view of the quality of the investment. Ask yourself, if this investment is so good, why aren’t they investing? When you invest in a property and the mentor or company that takes you there invests in the same property, you’ll have the peace of mind that they’ve done their due diligence on the property and the developer. What’s more, it’s a good sign that they are making money on the investment itself, not on sales commissions, travel expenses, brokerage fees, etc. If the mentor or company helps you to invest free of charge, they are making money on the investment – not from you – and that’s the find or person you want to help you.

Investors – both inexperienced and seasoned – will minimize their risks and improve their returns by finding a preconstruction mentor or company that can help them find the perfect investment. The best mentor or company will look a lot like the list above.

There are good returns to be had in the industry…just be carefull and look everything over VERY close and be sure to ask ALOT of questions a ALOT!!

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Post: Do your homework and stop your real estate deals from going

Post: Real Estate Investing Offshore!

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