Buying below the cost of construction is a no brainer.

This past week I successfully negotiated two purchases for an investor client of mine. He is a retired builder & he is buying these two homes for less than what it would cost to build them even if he had free lots to put them on. He is going to clean them up put renters in them and generate a return on investment double the rate he is getting in the bank. He figures he can't go wrong buying below the cost to construct and buy a lot, it is only a matter of time for the prices to return to the cost of building them. His only concern is that he can't buy more of them at these prices.