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How to Invest in Pre-Construction Condos in Panama City or Miami, Florida and Mississippi.
Watermark Resorts represents beach resort pre-construction condo real estate sales from
Panama City Beach, Florida over to Biloxi, Mississippi.
For a nominal reservation deposit and very little down you can invest in resort property. Historically this investment
strategy produces a great return on investment. Read about what others who have created condos for sale in Florida and Mississippi have experienced.
What is “Pre-Construction”?
Condominium developers offer individual units for sale to the public with the goal of
pre-selling a large percentage so the bank will finance the entire project. This units are made available through
real estate brokers and agents. Buyers of pre-construction condos basically reserve a first right of
refusal on a specific unit in a development by looking at drawings and descriptions of the project. This
industry standard four step process is clearly defined and state regulated providing protection
to the individual investor.
Click here to hear an interview with Steve Presley and Kyle Dreier as they discuss the pre-construction process.
1. Reservation Period. (typically 6 months)
When, for example, a Biloxi, Mississippi preconstruction property is made available for purchase
the developer provides floor plans and artist renderings with a brief description of the overall project. This initial offering is presented to clients and contacts of real estate agents. This is why it's important to sign up for our insider email list. At the reservation stage
interested individuals complete the necessary paper work accompanied by a refundable deposit, usually a nominal $5,500 to $10,000.
The deposit is held in escrow with a title company and is fully refundable should you decide to cancel your reservation.
The Reservation Period is typically 6 months, or until sold out.
2. Right of Rescission Period. (state mandated 15 days)
Once the developer is ready to proceed with the project
(usually 6 months after the reservation period began) he will deliver state-approved Condominium Documents. You
will have 15 days to review the documents and either choose to commit (Hard Contract) to the unit(s) you reserved or you may request
all your reservation fees be refunded. The Right of Rescission Period is 15 days.
3. Hard Contract.
When you choose to commit to the unit(s) you reserved then you will
complete the documents provided during the Right of Rescission Period. At this point you provide the balance of
earnest money (usually 20% of the purchase price). This balance is minus your initial reservation deposit. You may
opt to pay 10% balance plus file a 10% Letter of Credit [learn more] with the bank of your choice.
After you submit the hard contract it will take approximately eighteen to twenty four months of construction before closing.
4. Closing. (typically 18 to 24 months after Hard Contract)
When the development is complete a Certificate of Occupancy (CO) is issued.
From here it is much like the purchase of a new home. You are granted access to inspect your unit and create a punch-list.
Prior to closing
you walk through your condo to make sure everything is to your satisfaction. Then you go to closing. By then you have
made arrangements for the balance either by securing a mortgage or by providing cash.
Summary.
Where else can you go and tie up a $500,000 piece of Panama City real estate, for example, for only $50,000 over a 2 year period?
Not to mention that during that time there are no other out-of-pocket expenses ... no HOA dues, no property taxes, no maintenance expenses, no loan or interest expenses and little to no risk. It's clear why we are personally participating the investment of pre-construction condo sales in Florida and Mississippi, and why we have had so many individuals come to us to do the same.
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Pre-Construction Opportunities 