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FOR IMMEDIATE RELEASE

Wednesday, May 17, 2006

Pre-Construction Real Estate, the New Favorite for Investors

Nashville, Tennessee - (May 17, 2006) - With the uncertainty and volatility of the stock market in recent months investors turn to alternative vehicles for the results they desire. Real estate has been a long time favorite for many investors but with the proliferation of novice investors saturating other real estate investment strategies such as fix-n-flip, foreclosures and tax liens, savvy investors have turned to pre-construction investing for better returns.

"Where else can you 'control' a piece of real estate for 6-24 months without all the hassles of 'owning' the real estate" says Steve Presley, a long time pre-construction investors and one of the founding principals of Franklin Wealth Institute. Presley goes on to say "I've owned fixer uppers. I've been a hands-on landlord. I've fixed too many clogged toilets. Pre-construction offers the benefits of real estate ownership but without the headaches."

For the pre-construction investor, not only is the no-hassle factor advantageous but the small deposit due at contract makes for a tremendous leverage scenario for controlling real estate. For as little as 10% of the purchase price, the investor controls that purchase for the entire construction period and has no other costs to incur until closing. No taxes. No home owner association fees. No utilities and no maintenance. "For those who have been landlords they see the advantage immediately." says Presley.

As with most investors, those participating in pre-construction real estate want to know their exit options. Exit strategies vary from one investor to another but with pre-construction there are plenty of options. One popular option is "assignment" where the original buyer can sell the property prior to closing. This raises the question regarding risk. "If you never intend to close or are unable, then assignment is a fine option but poses a great deal of risk. The best attitude is to consider 'assignment' as an option while being prepared and able to go to closing" says Presley who has done some of each. "I've closed on properties and sold after closing with nice returns on investment, but I've also assigned or sold properties before close for nice gains."

When asked about the sweet spot in pre-construction Presley sounds much like any seasoned investor. He recommends purchasing pre-construction, which is typically discounted, and holding. "Let time be your friend. The longer you hold the more your risk is mitigated." Good advice for any investment.

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