10-24-2023, 03:42 PM
(10-24-2023, 08:54 AM)KaiserWilhelmsBust Wrote:(10-23-2023, 01:12 PM)CP42 Wrote: Is that uncommon in today’s market? I thought I read recently that most projects want to achieve around 70-80% of sales prior to beginning construction.
80% is fairly common but that amount covers construction debt so less 'speculative' I'd call it building on spec when you're only <50% sold
Deposits on 80% of the units is not enough to cover construction costs. However, it's enough to get less expensive construction financing as the bank will know that 80% of the units will close once construction is complete.