I am looking to make a rental property investment in Downtown Miami and the developer is asking for a 50% downpayment across the next 3 years in this way:Payment schedule:
- 10% due upon signing reservation agreement
- 10% due upon signing purchase agreement
- 20% due at groundbreaking
- 10% due at top off
- 50% due at closing
The price of the property I am looking at is 389.900 US$
How possible is it to negotiate this price? Can I consider they might have a discount margin on this price? What do you think of payment schedule, is it common? Any advise on submitting my offer?
I’d be extremely wary of having 40% into it before construction begins. There have also been a lot of cranes in the air in Miami recently, with overbuilding likely....being that occupancy is probably 2-3 years out, it’s a definite gamble on the market, and the influx of South American money which saved the condo market after 2008 is no longer strong.