New Condo Pre-Construction Investing

[Dalton Lauer]

Has anyone invested in pre-construction condo's before? There's a really nice new condo building being built on the intracoastal in Fort Lauderdale which the builder is asking 20% down pre-construction, another 10% down when construction starts, and the rest due when the building is finished. The idea is to sell before you actually get the keys and profit 50-83% ROI, assuming the building appreciates around 25% within the next 22 months like the builder is expecting. Has anyone done this investing before and received that kind of profit? It sounds like flipping, but a lot more passive. I'd love to hear others positive or negative experiences.

[Theresa Harris]

Just be careful and make sure everything has been approved and there is a way out if construction doesn't start on time or what happens if it is cancelled.