---
id: "claim-florida-roi-advantage"
type: "claim"
source_timestamps: ["00:02:15", "00:03:05"]
tags: ["roi", "florida-market", "leverage"]
related: ["concept-florida-condo-deposit-financing"]
speakers: ["Jay Roberts"]
confidence: "high"
testable: true
sources: ["jayroberts"]
sourceVaultSlug: "jay-roberts-florida-condo-development-2026Jun25"
originDay: 4
---
# Florida Deposit Laws Create Superior Developer ROI

## Claim: Florida Deposit Laws Create Superior Developer ROI

**Speaker:** [[entity-jay-roberts]]  
**Confidence:** High  
**Testable:** Yes

### The Claim

Because Florida allows developers to use up to ~90% of buyer deposits to fund construction (by posting a 2% bond), developers require significantly less of their own equity to build a project compared to states like California or New York. This high leverage inherently results in a much higher **Return on Invested Equity (ROI)**.

Underlying mechanism: [[concept-florida-condo-deposit-financing]] and [[concept-construction-bond]]. Spoken framing: [[quote-florida-deposit-advantage]].

### Validation (Enrichment Overlay)

- **Directionally correct** — Florida Statute §718.202 does permit deposit use for construction with bond/LOC backing, materially changing developer cash needs.
- **"90% of deposits" is overstated** as a blanket rule. The statute requires up to 10% in escrow but allows *excess* deposits to be used; aggregate released amounts must be backed by surety bond or irrevocable letter of credit.
- **"Drastically reduces required equity"** is plausible and economically sound, but ROI uplift depends on project-specific pricing, presales, leverage, and carry costs — it is not a statutory guarantee.
- **The CA/NY comparison is too broad** — the evidence confirms Florida's special rules but does not establish that all CA/NY condo developers must fund all equity themselves.

### Bottom Line

The core advantage is real, but a downstream agent should describe it as **"Florida has a uniquely favorable deposit regime that can lower developer equity needs and lift ROE,"** not as a guaranteed 90/10 mechanic in all cases.