Since builders have to pay for materials, labor, and other construction costs before the building is complete, they need a funding source. Some builders have their own pool of money, or investors who provide them cash to pay those expenses. Other builders use the deposits and monthly payments from pre-selling the units to get some or all of their cash. When a development is funded by unit sales, there can be more risk, especially if pre-sales are slow. However it’s not the only factor you should consider Learn More