The first step to buying in Pre-construction in South Florida is to get familiar with the different areas and what they offer. In each area we cover, you'll find the information you need on its web page.

You're buying before the construction of a property. Typically, buyers at this stage get discounted price compared to the price you pay when the building is constructed. When a developer is about to build a project, he would present the project to key brokerages. Then key brokerages (assuming they like the project), they present them to their customers. Key brokerages are the brokerages that developed good relationships with the developer. For instance, our team just won an award for Trump Sales. At this stage, the key brokerage clients can reserve a unit for a small refundable deposit.

Typically, a minimal refundable deposit will secure a reservation in the initial stages of Pre-construction.

Sometime later, the developer convert these reservations into contracts (binding contracts). At the contract stage, the developer would require as little as 5% down payment.

After construction begins, developers often schedule incremental price increases with the release of each new phase.

With buyers aware of increasing prices, demand tends to increase dramatically, which in turn lends itself to maximum appreciation opportunities.

Probable build out time ranges from 12-24 months, which affords buyers potential benefits in rising appreciation, and tremendous savings when purchasing early in the process.

You do not need to qualify for a mortgage. There are no financial Contingencies in the contract. The hope is to capture on appreciation as the market goes up without having to pay (carrying costs) mortgages, taxes, interest and the other expenses that you deal with if you own typical real estate investment. This has been the dream of many real estate investors in the past that had been burned out dealing with difficult tenants and other issues you face when you start investing in real estate.

Down payments an be as low as 5%. PAYMENT HAS TO BE IN CASH (not a letter of credit). It means if you're buying 300K condo, you need 15K cash with your contract. Developers do not take credit cards.

One Investment Example: high returns and limited risks