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Summary:
There are numbers of elements which are the key to successful
preconstruction investments.
Step 1: Reservation
First you need to sign a reservation
form thus informing the developer that you are interested. You then
need to put down a refundable deposit which varies in cost depending
on the builder and investment cost. Deposits range from $10,000 to
$300,000.
Step 2: Contract
Once the developer is ready and able to start working on the
project, a binding contract must be signed. In the state of Florida
15 days rescission period. See:
Florida Statutes, Section 718.503 The 10% deposit needs to be
paid and placed in Escrow. Unless stated otherwise in the “contract”
the developer can not use the 10% deposit.
Step 3: The assignment of contract.
Some developers may allow the investor to resale/assign the
contract. In most cases the developer will require the
resale/assignment to be accomplished through their in-house sales
office. If the property is not sold, prior to its completion, the
investor must close on the property and then can choose to sell it,
rent it or use it for themselves
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