Take Advantage of a Great Condo Development Opportunity

How The Model Works

Before developers can secure financing for major condominium developments, they must demonstrate the project's viability by pre-selling a certain percentage of units. We accelerate the pre-sell phase by purchasing units in bulk at a discounted rate, and then we give control of those units to our buyers at the same rate. It's a unique business model that makes pre-construction condominium opportunities available to individual buyers.

Before the condominium construction even begins, buyers put down a small deposit, generally between $30-75K, to secure one or more units from developers willing to offer below-market terms, discounts, and protections. While contractual protections vary somewhat depending on the project, here are some typical options:

Discounted, pre-construction pricing, typically 10%-15% off retail
Market downturn protection
Insured, interest-bearing escrow account to hold buyer's deposit
Fully-assignable contracts

The developer then re-sells the unit(s) at retail price as construction continues. By participating in the model, our buyers are generally able to liquidate their real estate purchase in 18 to 30 months with target returns of between 40-90%.

With the recent stock market downturn, this question not only becomes an interesting discussion point, but a very real and vital dilemma, especially for individuals seeking a relatively secure place to realize a return on their money. We have created a unique model that makes successful and low-risk real estate investment opportunities available to individual buyers.

Our business model revolves around the fact that before developers can secure financing for major condominium developments, they must demonstrate the project’s viability by pre-selling a certain percentage of units. We accelerate the developer’s pre-sell phase by acquiring units in bulk at a discounted rate. We then give control of those units to our buyers at the same rate with a pre-negotiated exit strategy usually resulting in our buyers selling their unit at full retail price for a substantial profit.

Because we work only with developers with a proven track record, and who are highly motivated to sell large numbers of their pre-construction condominiums, we are able to negotiate contractual elements that provide a low-risk, high-yield opportunity for our buyers.

While contractual protections vary depending on the project, we negotiate safeguards that require the developer, not our buyers, to assume most of the risk. Typical options include:

Of all of the protections mentioned above, the safeguard against a market downturn is especially relevant in today’s investment climate. If a condominium unit’s retail price is less than originally expected, our buyers receive a dollar-for-dollar reduction on their already discounted purchase price, thereby maintaining the originally agreed-upon spread. It’s an unprecedented safeguard against losses.

Before the condominium construction even begins, buyers put down a small, pre-negotiated deposit, generally between $30-75K, to secure one or more units from developers willing to offer below-market terms, discounts, and protections mentioned above.