New construction investing
Pre-construction, spec builds, and CO timelines.
Deposits, draws, insurance binders, and rental rules at delivery.
New construction and pre-construction investments in South Florida tie up capital through long timelines — deposits, draws, certificate of occupancy, and first lease. Underwrite soft costs, interest carry, and hurricane-season delays alongside hard construction bids.
Pre-construction diligence
Review developer financials, escrow structure, assignment rights, and cancellation remedies before wiring staged deposits. Luxury towers in Boca and Miami-Dade have seen 12–24 month delivery extensions from material and insurance-driven construction pauses.
Insurance and CO
Builder's risk covers the site during construction; landlord and flood binders are required at CO before DSCR takeout or first tenant. Start insurance quotes 60–90 days before anticipated completion — coastal binders are not same-day.
Rental rules at delivery
New condos may market investor-friendly rents but governing documents filed at conversion can impose caps and minimum lease terms. Review recorded restrictions, not sales-center promises, before you model post-delivery cash flow.
Capital lock-up timeline
Pre-construction equity may sit idle 24–48 months before CO and first rent. Model opportunity cost against value-add deals with faster lease-up — longer hold compresses IRR even when absolute profit looks attractive.
Assignment as exit
If your business plan relies on assigning before delivery, negotiate assignment rights and transfer fees upfront. Some luxury towers restrict assignments until 70% of units close — verify before you model exit.
New construction investor checklist
- Deposit escrow and developer track record verified
- Assignment and cancellation rights understood
- Draw schedule and interest reserve funded
- Hurricane-season timeline buffer in pro forma
- HOA rental rules confirmed for delivered product
- CO insurance and DSCR takeout aligned
Pre-construction is typically a condo contract with a developer. Spec build is ground-up on a lot you control — different deposit risk and financing structure.
Before you sign a pre-construction contract or lock a lot — we align financing, insurance, and build scope upfront.