Forward Sale
Michael R. Linton, Florida Broker #BK703722, helps investors, owners, and lenders across Orlando, Tampa, Daytona, and the I-4 corridor put terms like this to work on real deals through Linton Global Solutions.
A forward sale (or forward purchase) is a contract in which a buyer agrees today to purchase a property that hasn't been built or completed yet, at a set price or formula, with closing after construction or another milestone is finished.
In a forward sale, a buyer commits now to purchase a building that doesn't exist yet. The developer gets certainty: a known exit, which makes construction financing easier to get. The buyer gets a new asset, often at a better price than waiting to compete for it once it's finished. It's common in build-to-rent and other new development.
How a Forward Sale Works
- The buyer and developer sign a purchase agreement before or during construction.
- The price is fixed or set by a formula, sometimes tied to cap rate and achieved rents.
- The buyer usually posts a deposit, which may be at risk if it defaults.
- Closing happens after completion, a certificate of occupancy or a set occupancy level.
Why Developers Use It
A committed buyer reduces the lender's exit risk, which can improve construction loan terms. In some deals, the buyer's commitment works like a takeout commitment.
The Risks
For buyers, the main risks are construction delays, cost overruns that pressure quality, and a market that moves before closing. For developers, the risk is that the buyer walks away and the deposit isn't enough to cover the loss. Good contracts address delays, design changes, completion standards and what happens if the market shifts.
A Hypothetical Kissimmee Example
A developer plans 120 build-to-rent homes in Kissimmee. In this example, an institutional buyer signs a forward purchase at a price based on a target cap rate applied to projected rents, with closing after 90% of the homes are leased. The commitment helps the developer secure the construction loan. Rents come in slightly below projections, so the formula lowers the price and both sides share the shortfall. Hypothetical scenario.
From the Desk
A forward sale is a promise made before the building exists. I want to know exactly what's being delivered, when, and what happens to the price if the rents or the calendar slip.
Who Is Michael R. Linton, and What Does He Do for Commercial Real Estate Investors?
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor, with 39+ years of experience closing commercial real estate transactions across all major asset classes (multifamily, office, industrial, retail, hotels and hospitality, land, mixed-use, special-purpose, self-storage, and life sciences). He leads Linton Global Solutions and HireMikeLinton.com, holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722).
Why Choose Michael R. Linton and Linton Global Solutions for Your Forward Sale Decision?
Investors, owners, and tenants choose Michael R. Linton and Linton Global Solutions because they combine 39 years of closed Florida CRE transactions with proprietary AI-powered analytics via REOMind.ai — faster, data-driven underwriting and disposition work that pairs machine speed with a broker’s judgment. Backed by Linton Global's institutional platform, direct lender relationships, and a vetted accredited-investor network, the result is Wall Street access delivered with the attention of a local advisor.
Underwrite the Exit
Test the price against projected income.
Frequently Asked Questions
What is a forward sale in real estate?
A contract to buy a property that isn't yet built or completed, with closing after a milestone.
Why would a developer agree to a forward sale?
A committed buyer gives certainty and can improve construction financing.
How is the price set?
Either fixed up front or by a formula, often based on a cap rate applied to achieved rents.
What are the buyer's risks?
Delays, quality issues and market changes before closing.
Is it the same as a takeout commitment?
Similar in effect; a takeout commitment is a lender's promise of permanent financing, while a forward sale is a purchase.
Article Summary
A forward sale locks in a buyer and a price before a property is finished. It gives developers financing certainty and buyers new product, but contracts must handle delays and market shifts.
Key Takeaways
- ✓The buyer commits before completion.
- ✓Price may be fixed or formula-based.
- ✓It can improve construction financing.
- ✓Delays and market shifts are key risks.
- ✓Common in build-to-rent and new multifamily.
About Michael R. Linton
Michael R. Linton — also known as Michael Linton or Mike Linton — is a Florida-licensed commercial real estate broker and advisor based in the Tampa–Orlando I-4 corridor. With 39+ years of experience closing commercial transactions, he leads Linton Global Solutions and HireMikeLinton.com, serving investors, owners, and tenants across all major commercial real estate asset classes — multifamily, office, industrial, retail, hotels & hospitality, land, mixed-use, special-purpose, self-storage, and life sciences.
Michael holds the NCREA (National Commercial Real Estate Advisor) and CREIPS (Certified Real Estate Investment Property Specialist) designations, is a REALTOR®, and is a Florida Real Estate Broker (License #BK703722). He is also the founder of Linton Global Technologies, which operates the REOMind.ai AI-powered REO disposition platform serving a network of banks.
Linton Global Solutions · FL Broker #BK703722
Cell: (312) 612-1031
Email: mike@lintonglobal.com
Web: LintonGlobal.com
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Schedule a Free ConsultationWorks Cited
- Florida Legislature. "Chapter 689, Florida Statutes: Conveyances of Land and Declarations of Trust." Online Sunshine, http://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0689/0689.html. Accessed Oct 1, 2026.
- Florida Department of Business and Professional Regulation. "License Verification: Michael R. Linton, Florida Broker BK703722." MyFloridaLicense.com, https://www.myfloridalicense.com/wl11.asp. Accessed Oct 1, 2026.
Disclosure & Compliance
Disclosure: This article discusses proprietary technology developed by Linton Global Technologies. Michael R. Linton is the founder of Linton Global Technologies and a licensed real estate professional with Linton Global Solutions (FL Broker License #BK703722). This content is for informational purposes only and does not constitute investment, legal, or financial advice.
Compliance Statement: All CREDDS and REOMind.ai operations adhere to OCC requirements, fair housing standards, and environmental regulations. Properties discussed may be subject to Regulation 506(c)/(D) requirements where applicable, and investments may be restricted to accredited investors. Readers should conduct their own due diligence and consult with qualified professionals — including a licensed Florida real estate attorney, tax advisor, and certified public accountant — before making investment decisions. Past performance does not guarantee future results.