New condos in townhouses

[SailingHome]

How does this work? If they're not built yet you essentially pay a certain amount per month until they're finished and that's your down payment?

[Airalee]

I can’t even decipher your thread title let alone your post.

[Will B Good]

3 hours ago, SailingHome said:

How does this work? If they're not built yet you essentially pay a certain amount per month until they're finished and that's your down payment?

 

You are basically covering any cash flow problems they might/will encounter in building the property.

 

If you don't pay, then they have to borrow the money to build the properties and those loans cost, say, 10%,

[Peterw42]

13 hours ago, SailingHome said:

How does this work? If they're not built yet you essentially pay a certain amount per month until they're finished and that's your down payment?

Its usually 2-3 payments, a deposit, then progress payments. So much down, a percentage when the building is complete, balance when title is transferred.