Miami Pre-Construction Assignment Flip Calculator
Selling your pre-construction contract before closing? Enter your numbers, get net profit, ROI on cash deployed, and annualized return. All fees accounted for.
Defaults assume a $2M original contract, $2.6M assignment sale after 24 months of appreciation, 30% deposits already paid, a 2% developer assignment fee, and 5% realtor commission. Tune the inputs to match your building and contract.
Need the deposit schedule first? Use the Deposit Schedule Calculator to calculate cash deployed before running this tool.
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How Miami Pre-Construction Assignments Work
What is a pre-construction assignment?
You sign a contract to buy a condo that will not be delivered for 24-48 months. Instead of closing and taking title, you sell your contract to a new buyer for more than you paid. The new buyer takes over your contract and closes with the developer. You pocket the difference, minus costs.
Can I assign any Miami pre-construction contract?
No. Most branded residences (Waldorf, Cipriani, St Regis, Four Seasons, Aston Martin) prohibit assignments or heavily restrict them. Boutique and mid-tier buildings often allow them freely. The assignment clause is usually in Section 17 or 18 of the Purchase Agreement. Always confirm assignment rights before relying on the strategy.
What is a developer assignment fee?
A developer assignment fee is what the builder charges to process the transfer of your contract. Typical range is 1% to 3% of the original purchase price. Some projects charge a flat fee of $10,000 to $50,000. Luxury buildings in Miami Beach and Edgewater tend to charge on the higher end. The fee is paid at the time of assignment, not at closing.
How much can you realistically profit?
Realistic gross profit on a successful Miami pre-construction assignment is 10% to 25% of the original contract price for a 24-to-36-month hold, assuming the building is in a rising submarket. Net profit after fees typically lands between 5% and 18% of original price. Annualized ROI on deposits (your actual cash deployed) can reach 25% to 60% because you only fund 20-30% of the purchase price before closing.
What are the tax consequences?
Assignment profits are taxed as short-term capital gains if held less than one year, long-term capital gains if held more than one year. For foreign buyers, FIRPTA withholding may apply at closing. Florida has no state income tax but business entities may have filing obligations. Consult a Florida CPA and, for foreign buyers, an international tax advisor before executing.
How do I find an assignment buyer?
Most assignment sales go through a Realtor who specializes in pre-construction. Developers require sales-team approval of the new buyer, so a connected agent speeds approval. Buyer pools include foreign buyers, 1031 exchange investors, and end-users wanting completed product at a discount to new launches. Public MLS exposure is often limited because developers restrict open listings.