Are there limitations on buying, selling, or assigning preconstruction deals?
That will be decided by the developer. Be sure to read the reservation agreement and the purchase contract carefully. Remember, the developer wants to make as much money as possible. A homeowner will typically pay more for a unit than an investor and will be more serious of a buyer, so the homeowner will be preferred. The developer may want homeowner buyers only or may allow investor buyers but require them to wait a certain length of time before selling their property. The reason for this is if the developer decides to have a phase two or three, he will not want to be competing with those investors to sell his units. Assignments may or may not be allowed. Do keep in mind, though, that you are on the hook if you assign your right to purchase the property and the new buyer does not close. What are the risks of investing in preconstruction? Because EVERYTHING about preconstruction is in the future (completion date, market value, rental market), all of the information you have gathered or
