Preconstruction condo purchase

[Eli Rods]

I was recently offered an opportunity to buy a condo pre-developed in NYC at a special investor pricing (fundraising stage) from the developer. This form of selling is below market price (usually about 20-25%) and helps developer meet Fannie Mae guidelines; where at least 51 percent sold, among other requirements, allay bank lending fears to other buyers.

It was an eye opener to realize how developers discount their units to meet their financing requirements. Has anyone done this by any chance or could you share some light with this type of investment?