Jim Peters has helped build one of the nation’s successful real estate mentorship programs.  He along with best-selling author, Wendy Patton have shared the wealth creation process called, “Property Buying Tour”.  Their goal is to take investors by the hand and do most of the work for them.  The aspect of real estate investment Jim Peters teaches about is called “Preconstruction Real Estate Investing.”  This is buying properties at very early stages in the construction process.  Developers sell future property in-order to get money down for their project.  Investors buy a plot of land at market value and then the value goes up as soon as the land is broken and/or developed.  The profit is then made from selling the property at a later time; once it has appreciated in value by having roads put in, utilities added and homes or community amenities added.  The benefits are clear in preconstruction real estate investment.

Some of the benefits of preconstruction and predevelopment buying are there can be forced appreciation – the increase in value of a property by something the investor does that allows for predictable outcomes. As you learn the way appreciation works you also can predict those outcomes more easily.  You do however have to understand the economy, location and other factors. Pre-Construction Investors need to know their buyers, know your own strategy and finance your preconstruction/predevelopment project. It is important to remember there will be carrying costs on the loan until you sell the property. You also have to manage the construction.  Your contract with contractors has to be tight and specific on timelines, performance, etc. After the property is ready for your you can get ready to close the table.  You have to sell the property hopefully having used good strategies. This is why Jim Peters recommends having an education about preconstruction investment.  It is a new market for many investors.  Having a mentor as a guide through your first few deals can help you manage and cut through the hype towards true profit potential.