Vulture Capital Circles Miami
Warren Buffett isn't the only one looking to make a buck in the RE bust. "The vultures are circling the construction cranes and unfinished concrete-and-glass towers of Miami's white-hot condo craze. A handful of real estate entrepreneurs are forming 'vulture capital' funds to pounce on what they call an inevitable downturn in an exploding south Florida real estate market."
"Jack McCabe said he has formed an 'opportunity fund' that is nearly 'eight figures' to take advantage of a swoon he sees coming next year as a result of a bulge in the south Florida condo pipeline."
"'I believe many of them won't get built,' said David Dabby, a longtime observer of the Miami market. 'If all those projects go forward it seems pretty clear that there will be an oversupply.'"
"He believes a market downturn beginning next year will leave some speculators unable to close, buyers in bankruptcy or foreclosure and developers out of business. That's when the vulture capitalists will swoop. 'Some of the greatest fortunes were made in down markets,' he said."