Why buy preconstruction condos:
While there is no guarantee of appreciation, New Resorts.Com LLC has sold over A QUARTER BILLION DOLLARS IN PRE-CONSTRUCTION RESORT CONDOMINIUMS SINCE OCTOBER 2004 and is currently in the planning stages of over $1.5 BILLION worth oceanfront-oceanview resort condominiums.  By the time construction is complete, prices have typically increased from the original presale offering.  Call for the pre-construction history of our most recent developments.

Resort Communities Are Changing
Traditionally, a developer would build a hotel with limited amenities making his profit up front and then and turning the property over to a franchise or management company.  Today, vacationers are demanding condos and resort accommodations instead of a hotel room, and to compete, the property will require top notch amenities, i.e., multiple pools, lazy rivers, jacuzzis, exercise facilities, etc.

The developers must become "resort management-driven" with a long-term profit vision.   In many cases these developers have even been willing to build these projects at a loss, because the really big returns lie in the ongoing rental management fees.

Condominium buyers have a choice of rental management companies each year at contract time, and this means that the developer who is looking for his profit on an annual basis has to be on his best performance behavior.

Pre-construction Sales
Most lenders require a condotel project to be at least 80% reserved to be sold, before extending a construction loan.  Reservations are accompanied by "earnest money" deposits of 10%, or perhaps, 20% of the initial price of the unit. Since the developers are looking to make the majority of their money in the ongoing rental business, they have every incentive to get their projects built.  To speed up the progress, they usually offer substantial
pre-construction discounts to purchasers who are willing to sign up at this stage.  These "ground floor" opportunities usually generate a great sales interest because once the inventory is sold, the chance for pre-construction discounts is lost.

Although not guaranteed, the majority of times after the units have been built, and the purchaser has closed on the unit, a substantial amount of equity has been realized from the initial discount.  In some cases where the project was 100% sold out, developers have allowed pre-construction investors to re-sell their unit(s) before the building's completion, (known as FLIPPING) and then reaping their profits at closing.   Investors who hold on to their units for at least a year may also eliminate capital gains taxes, by qualifying for a 1031 tax exchange.

A Multi Service Real Estate Investment Company
The Myrtle Beach Home Store and its partner company, The Myrtle Beach Condo Store are a partnership of David O'Connell and Mike Benton, both of Myrtle Beach.

With over 10 years experience in real estate, development, commercial sales and 1031 Exchanges, they offer the full service company for Grand Strand Real Estate

We look forward to serving you in all your investment real estate and 1031 needs.