South Florida developers are bucking the buyer-finance trend in favor of traditional financing, despite the tight-fisted lending climate, the Miami Herald reported. The buyer-based fundraising model, which relies on hefty deposits from buyers to secure bank loans in order to build, is increasingly loosing favor with wary developers. “What if the project is three years overdue, and the buyer has 70 percent invested in it, earning no interest? They’re not going to be very happy,” said Gil Dezer, owner of Dezer Properties.
Dezer, who is currently building the 57-story Porsche Design Tower at 18555 Collins Avenue in Sunny Isles Beach, is asking buyers to put down 30 percent: 10 percent at reservation, 10 percent at contract signing and 10 percent at the start of construction. [Miami Herald] – Christopher Cameron