Miami Sunpost - January 2007

Groundwork
By Helen Hill

Hello to Preconstruction Syndication

BridgePoint Ventures, LLC, of Fort Lauderdale follows a different, more polished format. It offers preconstruction syndication in which developers and real estate purchasers can capitalize on current market conditions.

Basically the company works with developers in purchasing units in bulk so that, instead of attempting to market the units over the course of two years, or having to sell the project units at a loss, developers can fulfill the number of units needed to secure a construction loan right away. Then the units are sold off to individual buyers in a kind of wholesale to retail operation. (Note: Developers must be willing to meet certain terms.)

According to Eric Jafari of BridgePoint Ventures: “By leveraging relationships and using volume purchasing, the company is able to offer its joint venture partners preconstruction contracts with favorable terms seldom available to the general public.”