Buy Preconstruction Condominium - It's a Leverage Play

When you buy preconstruction condo, the developer dosn't get the money. A lawyer does. There's actually insurance policies that can be purchased on those deposits to help show the bank that you have those deposits in s place. The company that i work with is able to negotiate deals with developers whereby you may only need to put five % until the condeminium is ready for occupancy - which can be three, four or five years down the road. So it's a leverage play. Ultimately, you do have to get a mortgage, and ye rent out the unit, but then you can refinance it by another and buy another so it's a way to build wealth through real estate