I've been noticing a renewed interest among local buyers and investors toward preconstruction projects in South Florida, particularly around Pompano Beach, West Broward and Homestead.Some key factors driving attention toward preconstruction again include:- Lower initial pricing compared to similar resale properties- Flexible payment structures, typically spread across the construction timeline- Potential for equity appreciation from purchase to completion- Reduced early maintenance costs thanks to builder warranties- Emerging communities allowing more flexible rental terms, sometimes including short-term rentalsHowever, not all projects offer equal value.

Hi Andrew, great question—always smart to do your due diligence before working with any lender, especially in the private lending space.I’m a private money lender and broker myself, and here are a few red flags to watch out for with any lending site or offer:✅ Upfront Fees – Be cautious if they ask for large fees before issuing a loan.

Or should I start factoring the expense of a PM? 

The home field advantage in real estate is huge, it will make up for a LOT of other factors. 

For example, it might cost $80K to build but they charge $120K.Financing Kickbacks – Some partner with lenders and earn referral fees or offer in-house financing to profit from interest or servicing.Revenue Sharing Models – Some newer companies will build the ADU for little to no upfront cost in exchange for a cut of future rental income (often through Airbnb).Prefab/Modular Units – By using standardized designs and factory-built models, they reduce build time and labor costs, increasing profit margins.Add-Ons – Upselling property management, furniture packages, solar, or landscaping adds extra revenue per project.Each company is most likely going to be a bit different, but those are the common ways they monetize the service.

I didn't really like that, and i understand that there's other factors such as ADT and certain requirements from franchises, but it kind of left a bad taste in my mouth. 

These factors give you real, objective justification for an increase.Good Reasons to Raise RentA rent increase should always be grounded in purpose, not just habit.

There are also a lot of other encouraging drivers and tenant pool factors as well.

I do not charge an application fee.

Watch for red flags, like asking for large upfront fees before underwriting or a lack of transparency.