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New Construction Concepts for Real Estate Agents and Investors
New construction real estate involves the purchase of undeveloped land with the intent to sell it to another investor as-is or with improvements. New builds present a number of options but are trickier than their post-construction counterparts. Investors love to swoop in and snap up promising land deals on an emerging urban fringe. As a real estate agent, your job is to lead them to promising land for sale. Typically, this will include lucrative improvements that would be valued by investors or present a blank slate for imaginative investors.
Learn the LingoIt's important to learn the language of construction and a great place to begin is the Census glossary for new construction. You can also deep dive into topics that impact construction cost, such as equipment sales. Something as esoteric as excavators and replacement parts may seem a world away, but understanding the details of a project often makes the difference between making a profit or not.
Real Estate New BuildsInvestors looking for the best margins want competitive pricing, and the first phase of development is the cheapest to acquire. Basically, the lower the cost, the higher the spreads. There's a lot of risk here since many lots sit for years, slowly increasing in value. Many ... more

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