I’m talking about buying and then selling a pre-con unit. The short answer is yes—these transactions are known as “assignment sales.” But there are a few things you should know if you’re considering selling on assignment.
There are many phases of construction and approval involved.
As a buyer, you know that the end result will be worth it.
If you’re an investor, you might decide to buy a pre-con unit for the express purpose of selling it before completion.
Of course, you won’t pay the full price for your condo right away—you’ll just pay for a portion and in installments.
And in a hot market, you can usually sell for more than you paid.
In other words: under the right circumstances, investors can make a tidy profit.
The assignor and assignee are getting what they want.
The developer has to sell most of the units in their building before they can get financing, and investors can help speed that process along.
In a standard real estate transaction, there’s a buyer and a seller.
During an assignment sale, these two participants are known as the assignor (the seller) and the assignee (the buyer).