"Pre-Construction Resale" Con In Florida
Florida is reliving the 1920's bubble. "The initial transaction might be based solely on a phone call. 'That's almost as simple as it is. Some take ten, some take three, some take five. I buy three and sell one, and use the gains on one to offset the funding of the two others."
"The money that we make allows me to go back to the theater. It gives me the license to have a life." Like musical chairs, except the loser will need more than a place to sit down.
Some are feeling a little shame when confronted with the scam. "Not everyone likes the term 'flipping.' Mention it to Realtor David Jennings and he kind of flips out himself. 'The word has a lot of connotations,' said Jennings, a Realtor, 'I would call this a 'pre-construction resale opportunity.'"
9 Comments:
it will be worse than the 20's, more people involved, more debt.
IPO flipping circa 1999, anyone?
The more I read the more it sounds like the stock market of 5-6 years ago.
Its no wonder first time home buyers like myself can't afford and entry level condo unless you sell a pound of flesh or live in a hovel....these people are pigs at the trough being enabled by greenspan and his ilk....
("these people are pigs")
As a wise man once said (more like once or twice per show) bulls make money, bears make money, but pigs get slaughtered.
They will get theirs in the end.
this link is to an architecture site I browse, but it immediately made me think of this site:
http://www.usemenow.com/web-log/
Warning: Cheap & Dirty Statistics ahead.
If you go to census.gov you'll see that the population of the entire Miami-Dade county (pop. 2.3 mil) has only increased by 109,000 in the last 4 years- Miami itself had a population of 362,000 in 2000, so using simple percentages its population has gone up by maybe 20K. In the past 9 years, there were 7,253 condo units completed. Right now, there are 10,973 units BEING built, with projects totalling 22,000 units approved for building but not yet started.
Miami seems to be on target to build a condo for each & every new resident, and then some.
this link is to an architecture site I browse, but it immediately made me think of this site:
http://www.usemenow.com/web-log/
Warning: Cheap & Dirty Statistics ahead.
If you go to census.gov you'll see that the population of the entire Miami-Dade county (pop. 2.3 mil) has only increased by 109,000 in the last 4 years- Miami itself had a population of 362,000 in 2000, so using simple percentages its population has gone up by maybe 20K. In the past 9 years, there were 7,253 condo units completed. Right now, there are 10,973 units BEING built, with projects totalling 22,000 units approved for building but not yet started.
Miami seems to be on target to build a condo for each & every new resident, and then some.
I have a friend in Naples and he says it is every bit as bad or worse than the reports, near riots at some of the condo bidding wars...
It will end badly... just don't know how badly or when...
DryFly,
(in Naples and he says it is every bit as bad or worse than the reports, near riots at some of the condo bidding wars)
Thanks for the field report.
John,
I heard my first camping-out-to-bid-for-a-house incident in Arizona today.
I wonder what will happen on Wall Street tomorrow?
I'm wondering how does that work, getting a loan on a property that does not yet exist. Aren't mortgages normally secured by the property itself? Do FannieMae and FreddieMac buy that sort of mortgage?
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