The past decade has seen a global shift of small and large scale investors revising their investment strategies from bits and bytes to something more concrete, real estate.  This is largely, if not entirely, down to the internet tech stock crash.  The result was one of the largest worldwide real estate booms in history. 

Developers had a hard time meeting the demand for condos and apartments and often sold their projects at pre construction prices at substantial discount prices to buyers. It was a win win situation. All the buyer needed was a 10 – 30% down payment and the developer had pre construction contracts to present to the bank, thus proving there was a market, qualifying them for construction loans.  Unsold pre construction units could then be sold on completion at high prices.

Sometimes the pre construction deposits were held in escrow but in some cases the developer was free to use the down payment as operating capital.

Bulk Pre-Construction Purchasing

The real estate and pre-construction buying boom of the last decade created another metamorphosis called bulk pre-construction buying.    Innovative developers and investing institutions combined forces and came up with another way to help themselves and buyers at the same time. 

The investing institutions buy blocks of properties from a developer at a greater discount than the normal pre-construction prices.  The developers were willing to do this in order to achieve faster sales and avoid having to sell units individually thereby reducing marketing costs. 

The investing institution makes a profit, the buyer makes a saving and the developer has sold his units without incurring the expense of real estate brokers.  The risk for the buyer is reduced as the developer has money in hand to complete the project. 

The Axiom Way

Enter the company Axiom Realty Capital.   Axiom has taken all the benefits of bulk-pre construction buying and made it even more attractive with their system.  The few loose ends of risk that are not covered under conventional bulk pre-construction  have been neatly tied off with their ingenious system. 

Market Value

With a normal bulk pre-construction purchase the buyer has to select the property and do some research to find out whether the purchase price is in fact a good deal and below market value.  If you are looking to buy in an area where you live and are familiar with real estate prices and trends that is no problem.  But what if you want to expand your real estate portfolio and invest in another location that you are not familiar with?  This is taken care of by Axiom.  They use their extensive resources to do market research ensuring that you receive below market value discounts. They check that the market trend in the area is positive and not negative during their buying and sales cycle and your buying cycle.

They have a big stake in the purchase also because they will buy a large amount of properties from the developer and will have to resell all of them.

Contract Signing:  15% above market
During Construction:  20% above market
Total Investment Return:  40%-90%

Deposit Security
Remember, when pre-construction purchasing and bulk pre-construction purchasing, some developers will use that deposit money for running their business and some will put that money in an escrow account depending on the contract that the buyer has with the developer.   With Axiom’s bulk purchasing power, they negotiate with the developer to put all deposits in a third party escrow account until completion of the project.  This completely eliminates the risk of the buyer losing the deposit money if the development company goes bankrupt before the project is complete and you have a title to a property. 

Leverage

For example, a 10% down payment on a property priced at $500,000 means you will need to deposit $50,000 in a third party secured escrow account.  The value of the property initially will be a minimum of around $588,000 due to the Axiom 15% purchasing discount. 

In other words, the condo next door to the one that you purchased, which was not a part of the Axiom Block is selling for $588,000. 

So if you decide to pre-sell during the construction process, which is usually a minimum of 18 months, you could make a total profit of $88,000 fairly quickly.  Now the beauty of this scenario is that you only used $50,000 down to net a profit of $88,000.  Remember what makes this valuable is that the market research effort of Axiom has taken out as much risk that is possible in a real estate investment, so your chances are very good at making these returns.

No Loss…Only Gain

Here is another incredible advantage by buying with Axiom.  Because of the bulk purchasing power of Axiom, they have also negotiated with the developers a major deal.  If the property that you purchased for some reason has a market downturn, the developer will lower the price of the property that they sold you to match the market. In other words, they insulate you from any downturn.  Nowhere else in any investment opportunity, real estate or other sector will grant you that protection.  So if people are selling that $500,000 property that you bought for only $450,000, when it comes time for you to come up with the balance when the construction is complete, the developer will only ask for $450,000 and not the $500,000 that you bought it for.  It does not get any better than this.

Axiom is not new to this business. They have many successful bulk buying projects behind them which are listed on their website, where you can read more information on the company and more detail on their system.