Posted by GL(ON) on July 07, 2002 at 06:39:36:
How much do they require as a deposit?
Whenever real estate prices are booming this opportunity presents itself. You don’t have to get a mortgage or pay a down payment until the house is complete which may be a year from now. Then you sell for a profit without touching it or doing anything.
There are 2 drawbacks.
One is, when the boom ends, you can be on the hook for a lot of houses that are not worth what you promised to pay for them.
The other is, developers have gotten wise to this and put clauses in the contract to prevent it, or to soak up the profits for themselves.