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Booming Real Estate Profits From Baby Boomer Investing
In last week's article, called "Irrational Exuberance, Part II?," I discussed some of our concerns about what is happening in the preconstruction investment real estate market. What many people have asked me is "if you're so concerned about the real estate market, then why invest so much with yourself and with the preconstruction MasterMind Group?"
The answer to this is really quite simple: we find preconstruction projects that make complete sense EVEN WITH the current market conditions. Many people think about the markets as one big entity and you either decide you are in or out. In preconstruction real estate, this is dead opposite of how we think. Instead, we look for preconstruction investment opportunities that make complete sense in this market and then, if we are wrong, we look (in advance) for ways to exit with our skin still attached.
In this week's article, let's explore such a scenario. If you have been on one of our teleseminars, you have probably heard me speak about the "Baby Boomers" and the impact that they are EXPECTED to have in the southeast and the southwest. Without getting overly technical, here is the short story:
" We have an incredibly large % of our population moving towards retirement age over the next 15 years;
" A large % of these people have no intent on staying in their current locale;
" Even though many boomers are ill prepared for retirement, there is still a significant % of people with tremendous wealth;
" These people want to live in places with good "lifestyles.
With that body of knowledge above, you can make great preconstruction investments however most people want to overly complicate things. So let's look at a typical conversation after someone has been exposed to baby boomer investing.
Q: How do I make a good preconstruction investment with minimal risk?
Q: But what if the price drops because of all the investing going on right now?
Q: So when will I see a good return on my preconstruction investment?
Q: But I don't want to wait that long. How can I get in and out in a couple of years or less?
Q: Is there risk in this type of shorter investment?
Q: What kind of preconstruction properties am I looking for?
Q: Can you give me an example?
Once we had gone to the property, our perspective changed 180 degrees. We were taken to see a preconstruction development that spans multiple mountain peaks and truly has spectacular settings. Each future homeowner will have large 2+ acre lots that are extremely private. In addition, there is an extensive effort to keep this development completely natural (no lawn mowers----YEAH!!!). While hard to describe in a paragraph, this property is unlike any that I have seen before.
When you go on property and get the full picture, I have no doubt that you could buy and hold this for 10-15 years and make a great return. However, there is a twist. It turns out the developer is really good at marketing but better yet, they are getting free exposure that is expected to bring over 50,000 people ON SITE during the next year. Ok, this might be a property you can buy now and sell for a tidy profit in short order….. If you're wrong, then just hold it a little while longer.
Q: That sounds nothing like a preconstruction condo?
As you will see in upcoming articles and project announcements, we think much more broadly than just preconstruction condo's and we encourage you to do the same. In our opinion, the baby boomer market acts very differently than the "investor market" and right now, we believe there is lots of preconstruction opportunities in the right kinds of properties.
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