Recently, actual property funding professional Phuong Ngo has an article sharing about easy methods to create a short-term land fever, about 2-3 weeks of “sharks”.
How to create a short-term fever
In his article, actual property funding professional Phuong Ngo (Da Nang) shared in nice element how a gaggle of buyers with financial potential (sharks) create short-term land fever, in 2-3 weeks. Accordingly, this group will spend 100-200-300 billion VND to purchase land in 2-3 months. After that, they’ll implement a brokerage and retail funding plan.
The first, they’ll put their staff on all exchanges, order 1-3 los of land. They will mobilize about 500 brokers, 200 folks asking to purchase land.
Next, the “shark” group will make a deposit backwards and forwards. They will give 10 folks to purchase, deposit 2 billion VND for 20 roads (solely pile however not purchase) and proceed to let many individuals ask to purchase, pushing the value to 2 billion 5 VND. This will make different buyers settle for the value of two billion 5 dong as a result of they really feel “fever”. Thus, inside 1 week, the value can enhance to 500 million VND.
In explicit, this trick can proceed to recur. For instance, the “shark” group purchased 2 billion dong however bought 2.5 billion dong, then faked a further 200 million dong. Many individuals are keen to spend 2.7 billion VND to purchase as a result of they really feel “fever”. At this time, this group will revenue as much as 500 million VND (this revenue has deducted the price of dropping the deposit).
Moreover, the trick of piles away, piles again, salutes backwards and forwards, inflicting land costs to skyrocket. A land plot of two billion VND will be as much as 3.5 billion VND because of this trick. The “shark” group will profit from two issues: the revenue of 100 plots of land and the cash folks put down.
Who will likely be victims of short-term land fever?
According to actual property funding professional Phuong Ngo, the “shark” trick of blowing up land costs is the reason for the short-term land fever in current occasions. When land fever peaked, a plot of land had as much as 17 deposit contracts. On common, every plot of land could have about 5 deposit contracts.
Normally, buyers who have no idea the true property market will fall into the “shark” group. Short-term land rushes are sometimes created by funding teams with financial potential. Therefore, if an investor closes rapidly, he could make a revenue, but when he cannot exit in time, his capital will likely be buried.
The key to the short-term land craze is the “shark” group’s trick to inflate land costs. This trick will create a powerful domino impact with clients asking to purchase massively and deposit repeatedly.
From 2017 to now, this trick has been utilized by many teams of “sharks” repeatedly in the true property market. And so on, many individuals who haven’t any actual property funding expertise are always being fooled.