for an existing home. Everyone that was in attendance could put their name and address in a fishbowl. They notified the crowd they would be selecting 15 of the entries. This gave them the opportunity of purchasing one of the next 15 homes the builder would build. No pricing, floor plan etc. A friend invited me to go with him to this lottery. There were over 100 people in attendance. He ended up the lucky winner and was one of the 15 selected. During the construction period, the prices continued to be raised and were actually increased twice in a single day. He ended up going through with the deal in purchasing the home. Crash. The value went down so much and the loan was so high, that he ended up losing that home and the second one that he had purchased the same way. He also lost his personal residence which he had used for collateral to obtain the down payments on the other two homes. This story happened multiple times with multiple people.

Be careful.