By Bob Davis

February 2007 Meeting
by Robert Davis

            Justin Ryan talked about the advantages of doing pre-construction investing in the right areas. He talked about the four phases of the emerging market cycle. Phase 1 is before values have started up. This is not the phase to invest in. Phase 1 may last for 10 or 20 years.  Phase 2 is when the values just start to rise.  Phase 3 is when values are rapidly increasing. Finally, Phase 4 is the cooling off phase. Prices typically level off or decrease then.  The best time to enter is early in Phase 2. He says we should get in, wait for significant rise during Phase 3, and get out at 50% to 60% of Phase 3. Never hold until Phase 4 starts.  He also told us of a city in Mississippi that is currently going through Phase 2 and will probably continue into Phase 3 for 5 to 7 more years. Additionally, a special tax break is available for investors there.

            His plan is to only invest in long build cycle pre-construction when the builder holds the financing.  This way we can lock in at todayís price, wait for a price rise, and sell to a retail buyer.  He also pointed out with this type of investment, we have no rehab costs, no property management, no maintenance, no negotiating with a bank, and no payments.  We basically can write a check, wait, and sell at a profit with his plan.

            Lastly, Justin talked about some of the things successful people do.  We should always try to buy with a low percentage down.  This helps our return on investment percentage and allows us to do more deals.  Of course we need to buy below market value.  Try to buy using other peopleís money, credit, equity, or IRAís.  Buy in an emerging market wherever it is. Buying with a group can have more clout. And finally, his method is to buy in an emerging market before itís built with a long build cycle and with the builder carrying the financing.  He looks for a discount off the price, a hidden property that has not been listed yet, and a low down payment.  He will be doing tours on March 20-22 and June 5-7.  Justin can be contacted at 1-800-913-7560, or in the web at He showed us yet another way to earn profits in the real estate business.

Search The Suncoast Real Estate Investors' Site

Trying to find a particular vendor? Use our search facility.

Copyright © 2005 - 2009 Suncoast Real Estate Investor's Association. 
All Rights Reserved.

Email Newsletter icon, E-mail Newsletter icon, Email List icon, E-mail List icon Sign Up For Email Notifications

Remember to Bookmark or Add to
Your Favorites

Come back and
visit us often.