What are the risks of investing in a Miami Beach condo-hotel?
A. You could buy the wrong unit in the wrong building. This is possible if you receive misguided advice from your Realtor or the developer. B. You could buy in to a Miami Beach condo-hotel that the developer doesn’t finish and lose your second deposit. If the developer becomes undercapitalized due to lack of sales, inaccurate budgeting or rising material costs, he can cancel your Reservation Agreement. In this case, your initial deposit, usually 10 percent, is fully refundable. If, however, the developer ceases construction after your reservation has moved to contract, at which time a second deposit of usually 10 to 20 percent is due, and, by contract, he uses this deposit for construction, these funds may not be returned to you. C. You could buy in to a Miami Beach condo-hotel that the developer underprices. This might cause your contract to be returned, which means if you still have interest in the property, you may have to begin the buying process from scratch and most likely at a h
