Owner: Condo Fiasco URL:http://www.condofiasco.com Join Date: Sun, 17 Jun 2007 22:08:54 -0500 Rating:0 Site Description: This is the story of my great 'investment' in a preconstruction condo on Brickell Ave in Miami. The building is almost ready and I need to get out fast! Site statistics:Click here
Condo Sale Alternatives 2007-06-17 15:06:03 I’ve been thinking of all the ways out of this. If I can’t sell the condo before it’s ready I’ll have to somehow rent it out. It would be nice if there was a company that could handle this…without charging me an arm and a leg! From everything I was told, The Plaza is supposed to be super sophisticated, with a concierge and front desk…they really would be the ideal people to handle this. They could even treat vacant apartments as vacation rentals and handle all of that for a fee to unit owners who wanted.
Here is a breakdown of ideas:
Find yearly contract renter
Advertise unit as rent-to-own (owner financing)
Furnish and advertise unit as vacation/temporary rental
Raffle unit
Other ideas are welcome. Read more:Condo
, Alternatives
Florida and Miami Housing Forecast Poll 2007-06-16 13:20:28 So I made four graphs representing what could happen to the Florida
(blue) and Miami
(red) housing markets. I wanted to get an idea of how people feel this is going to go.
Graph 1 represents a pretty pessimistic forecast showing a continued decline in median house prices.
Graph 2 represents a VERY optimistic forecast showing that worst is over and we are headed to another increase in home prices.
Graph 3 is a fairly positive forecast showing a long plateau of existing home prices ahead after a short period of price decline.
Graph 4 is the most pessimist of the forecasts showing existing home prices dropping to before 1999 leveles
Which chart best represents the most probable projection for the Florida and Miami housing markets?
Chart 1
Chart 2
Chart 3
Chart 4
None of the above
View Results
Read more:Housing
, Forecast
Realtors calling me left and right 2007-06-15 10:45:33 So, just as I thought, I’m getting calls from a bunch of real estate agents. I’ve been telling them that contractually I’m not allowed to list the property on MLS and hence with a realtor… after all, that’s what they’ll probably do…and then wait… and if they don’t sell it well then I’m screwed. There is something wrong with that. I should be able to list it with as many people who say they can sell it for me as possible. Just as I was writing this post another realtor called… man…I should figure out a way of making a buck for each realtor that calls me…I could pay off the mortgage! Put thinking cap on…
Maybe if all the real estate agents made a deposit with me, then the first guy to sell it gets their deposit back. But going back to the contractual limitations, I really am not allowed to list it on MLS. So that pretty much kills that idea. Read more:Realtors
Even worse than I thought? 2007-06-15 06:55:30 Could the situation actually be worse than I thought
? I just read this:
“In Miami-Dade County alone, 8,000 new condo units will be completed this year and nearly 12,000 more in 2008.”
Herald Tribune
Some investors are wiggling their way out by finding loopholes in the contract. One guy who put a deposit on a preconstruction condo claims he was promised a view which now won’t exist because of new construction all around. I have a hard time trying to do something like that…take it like a man I think…if the market hadn’t soured this guy would be thrilled if he could make some profit…even if it would have been a higher profit without the surrounding buildings.
Condo Vultures Circling…just what I needed 2007-06-14 16:33:36 I just read this article on money.cnn about Miami being the worst place for someone in my situation. Well, I guess this means I will be shopping for a mortgage and a renter. It’s not greed here..I just don’t want to be eaten alive by the opportunists waiting for all the condos to be ready and the prices drop even more. Want to rent a great little apartment on Brickell Ave? Let me know!&hellip
;great price.
Anyway, I don’t blame the ‘vultures’ for hanging around and waiting, I probably would have done the same. Probably now is the time to get that 5-year ARM and wait out the next few years. Read more:Condo
, Vultures
Top FSBO sites 2007-06-13 22:09:54 So here is the list I was talking about. These are sites that let you post your property. I added a keyword column to illustrate that a site might get a lot of traffic but not necessarily qualified.
Web Site
Monthly
Visitors
Number of
Properties
FREE?
Most popular
keywords
realestate.yahoo.com
2,600,000
no
www.zillow.com
1,900,000
yes
www.oodle.com
1,300,000
yes**
classifieds
www.forsalebyowner.com
1,200,000
no
by owner sale
www.backpage.com
848,653
8,178
yes
rental
www.owners.com
560,246
46,447
no
by home owner
www.domesticsale.com
553,561
yes
www.livedeal.com
544,240
yes*
www.vast.com
493,433
no
www.chooseyouritem.com
412,007
1,000
yes
www.craigslist.com
370,108
yes
www.usfreeads.com
268,808
303
yes
www.americanclassifieds.com
266,892
yes
www.homesbyowner.com
234,603
yes
fsbo leads
www.buyowner.com
221,455
no
fsbo
Ad on DomesticSale.com 2007-06-13 19:20:06 Ok, I actually sat down today and put together the most definitive list of places to post your property for sale online. I looked up traffic numbers and prices. I’m going down the list and adding my condo on every single one. On the top of the list were yahoo.com
zillow.com
oodle.com
forsalebyowner.com
backpage.com
owners.com
domesticsale.com
livedeal.com
vast.com
chooseyouritem.com
craigslist.com
usfreeads.com
DomesticSale.com lets you place an ad for free and they even give you this neat little code to place on your site:
Condo-Townhouse for Sale
847 sft., 1 bedr. $379,000, The Plaza on Brickell. 45th floor of super luxury sophisticated high rise in most desirable area of Miami. …
Nationwide ads
Zillow.com ad 2007-06-13 09:06:24 So I posted my condo on Zillow
.com. Was very easy and free. They do ask for a credit card but for obvious purposes…they don’t want anyone just posting other peoples properties. Very clever move by Zillow…what they really want is the property info…owner name, photos, etc… by making it free they get all that good stuff.
My condo is a preconstruction so when they tried mapping my condo it was wrong but they let you move the location on the map…very nice. Very nice..and free, however I suspect the following will happen, a bunch of tire kicker, real estate-porn browsers and agents will be looking…man I hope no agents call me…I will be pissed.
Condo Rules…not 2007-06-13 08:57:42 I refuse to lose money with this thing. I’ll keep it till the market changes&hellip
;.whenever that is. If I can sell it now great. The problem is I bought it $355k and dropped $70k on it. The market value is probably $320k but that doesn’t mean I lose $35k…it means I lose at LEAST $55k because the builder wants 6% plus some other extortion fees.
So right now I’m shopping for a mortgage and buyer…which ever comes first. I will try to post the property ‘for sale by owner’ and see if I can simply transfer the contract and save myself some fees. Here’s my plan, I’m going to place the property on as many paid and free sites I can. I’ll keep you posted on which one gets me the best response…could be a good little survey. Then I advertise in newspapers in Venezuela, Colombia, and Spain. I will also try to get as many bloggers as I can to help me unload this thing.
The builder won’t let me put it on MLS so that real Read more:Condo
, Rules
Why I’m writing this blog 2007-06-12 20:31:37 My story began in June of 2004. My wife and I moved to south Florida and purchased a house. We then sold our old apartment in Rockville, MD and came into some good money. We decided to buy a car and invest the rest…back into real estate. Some good friends of ours had just purchased a pre-construction condo in Miami with some friends of theirs and there were a few units left. We figured that was a perfect opportunity. So I called my brother and told him we should go in 50/50 on it. So my sister-in-law was in town and we went to the sales office and signed the papers. $35k each.
Remember, this was the height of the real estate boom and we were very confident that getting in at phase I was a great deal. The property in question is The Plaza on Brickell. All the credentials were there. This was a development by a very reputable builder with a long portfolio of real estate success (Jorge Perez and The Related Group). Everyone kept telling me that everything he touched turned to gold Read more:writing
Hialeah Historic District? 2007-06-20 08:28:32 Ok, this is just my optimism speaking louder than my better sense but there has been a lot of buzz here in South Florida about some historic landmarks and their preservation. If you live around here you think of Hialeah as being a dirty ugly place where poor people live. The thing is that there are some really nice, abandoned places in Hialeah that are getting national attention. Right now properties in Hialeah are dirt cheap. Take a look at the natural beauty and the architecture at Hialeah Park. I cannot imagine that this would go unnoticed or worse…torn down.
Read more:District
Florida Once Again Top Destination 2007-06-20 06:55:25 I was glad to read this article this morning about how Florida
regained the status of top tourist spot. Hopefully hurricanes won’t scare anyone away. For all you people out there who have not been to south Florida… come on over.
(more…) Read more:Again
, Destination
What is a preconstruction and how I ended up with one 2007-06-19 10:05:45 This post is intended to respond to a comment on one of my previous posts. Once again, it’s nice to see people are reading my blog.
“Coudl you make a post explaining exactly what a pre-construction condo is and how you ended up buyign one?”
A preconstruction (pre-construction) is a property (apartment in my case) that is not finished yet. At the time I had $70k I wanted to invest and I had a friend was buying a unit in a condo that was being built in Miami. It wasn’t listed in the MLS or anything, it was just word of mouth for me. But they had a nice office, the lot had been purchased and ground breaking was to begin in six months. I hadn’t heard of the builder at the time but later learned he was the biggest and most successful one around, plus I know many of the other buildings and projects he (The Related Group is the name of the company) had made…namely Cityplace in Palm Beach, FL. It’s really a great place and that gave me a lot of conf
Condo Vultures 2007-06-18 16:34:06 I hadn’t heard of the term condo vultures until I posted a comment about condo vultures in Miami. Now the term condo vultures are the top keywords by which my blog is found. The only thing I can think of is that scene from Conan the Barbarian where he is crucified and left to be eaten by vultures… but he fights back and wins. That’s me…just not as muscular…but I will NOT let the condo vultures take advantage of my situation. So people… I need your help…if you know of someone who is willing to pay $379000 for the apartment which will be ready in January 2008, let me know! Read more:Condo
, Vultures
Moving into the apartment myself? 2007-06-18 10:26:35 I just read an interesting comment someone posted (cool!…someone is reading my blog). The suggestion of moving into the apartmentmyself
arose. This is actually been a running joke with my wife..she says she’s waiting for us to have to move into the condo if we can’t sell it. Unfortunately, we live and work in Palm Beach county and we have 2 year old, a dog and my wife is due in August…would be interesting moving into a 847 square feet apartment. I would love to find a good renter, someone I can trust.
Read more:Moving
Conversation with The Plaza on Brickell 2007-06-18 09:43:40 So I called The Plaza on Brickell
this morning. I had a few important questions and I had to tell them about the price reduction. So as it turns out, my asking price is the lowest in the upper part of the building. I have mine listed at $379,000 and it’s on the 45th floor. The closest unit is on the 43rd and they are asking $399,000…come on people…time to buy!
I also learned that building 901 will be ready in December but my building will only be ready 1st quarter of 2008 (January or February). It was nice to hear that the entire building had sold out three years ago, which means I am not competing with the builder…all the units they are selling belong to suckers like me.
The maintenance fee on the building will be $400/month. This means that if I have to rent it out, my mortgage will be maybe about $1700/month + $400 maintenance fee, $2100/month. I would have to rent it at $2100 to break even.
The other thing I asked is about is how many units are available Read more:Conversation
Market Forecast Poll Results 2007-06-22 11:02:03 Thanks everyone for voting (all four of you). As it turns out… things will NOT get any better. I love the optimism that exudes from my readers…makes me feel warm and wanted.
Read more:Market
, Forecast
Let the Lawsuits begin! 2007-06-21 10:39:22 I just read about Collier County Commissioner Jim Coletta (see picture) of Naples, FL suing a builder to get their $28k deposit on a preconstruction back. I hope the legal fees aren’t more than say…$500. On a similar note, a group has filed a class action lawsuit to stop the construction of a luxury high rise. That would be an interesting approach to get out of preconstruction. Find some environmental issue and halt the construction…I’m sure everyone would get their money back. Or just spill hot coffee on yourself. Read more:Lawsuits
, begin
Sales Down…Prices Same…go figure 2007-06-26 10:25:36 I just read an article about sluggish sales in South Florida but prices have remained the same. Probably people like me who refuse to loose money. Read more:figure
, Prices
, hellip
, Sales
The Related Group keeps expanding 2007-06-24 22:00:08 What amazes me the most is that The Related Group
(the developers of my condo) are still really active. In a project with Donald Trump, they were able to sell 60% of condos worth $900k to $2.5 million. In such a bad market, that to me is incredible. It is reassuring to see that people are still buying. I should advertise my unit as a $700k apartment and attract those high spenders. Read more:expanding
, keeps
The Related Group in the news for no good reason 2007-06-29 20:39:47 Seriously I don’t know what’s newsworthy these days anymore. Why is there an article simply titled The Related Group
on CNN Money today? The article says this:
The Related Group is great
The Related Group made Miami great
The Related Group is building in Latin America
The Related Group is making low income homes because they are so generous
Happy birthday… I’m still losing money.
Small World 2007-06-28 14:41:12 I happened to be talking to someone in my office about my condo fiasco and this person is in the exact same predicament. She bought a place on the “Avenue on Brickell Condominium” 1060 Brickell Avenue, Miami FL 33131. Her deposit was $40k and the place was worth $380k. I hate to see someone else in a similar position but I think she is worse off. Her apartment is on the 23rd floor and she paid more… but it is a little bigger 1000 sq ft. (versus 847 sq ft on mine) and it has an ocean view. She called them today and they said the unit will be ready in December and that they can rent. Read more:Small
, World
, Small World
A Friend In Need Is A Friend Indeed 2007-07-02 13:23:27 I have some good news. A good friend of mine told me he would like to go 50/50 on the condo if I have to close. That is welcome news at a time I’m trying to make ends meet. He said even if each of us has to put out a couple of hundred bucks a month, in a few years the place will definitely be worth more. I’ve believed that all along. It’s nice to get some help. That means the we can rent it out, get as much as we can for it per month, pay the mortgage then split the taxes and condo fee.
Signs of hope in other areas of Florida 2007-07-27 08:00:57 Sorry I haven’t written in a while. My wife had a baby. So anyway, I just read that 469 existing homes were sold in Miami in June. That’s a drop. Statewide, existing home sales dropped for the 4th month in a row. But while prices dropped 5% in pretty much every area of Florida
, home prices actually went UP 5% in Sarasota. That’s excellent news. Hopefully the condo machine in Miami will stop churning out new inventory long enough to give demand a chance to catch up. One cool thing I saw though is a directory of Condo Hotels. Maybe my place will make that list! Read more:areas
And Once Again…more bad news 2007-07-30 08:00:23 So this is the headline this morning: S. Fla. condo, home sales continue drop Here is the summary:
Condominium sales in June compared to the same month a year ago: dropped more than 50 percent
Number of existing Miami-Dade single-family houses sold in June compared with a year ago: dropped 47 percent
Single-family houses and condos listed for sale: 77,000
Single-family houses and condos listed for sale this time last year: 50,000 Read more:Again
, hellip
Finally a developer in trouble 2007-08-06 08:38:38 With all the chaos going down in my life with this condo, it seems that the developers are oblivious to what’s going on. Everywhere I turn around there are plans for new condos. More condos!?!?! In the case of The Related Group, they sold out on all their units and will do quite well this year:
“The Miami-based company, which was started by CEO Jorge Perez in 1979, posted revenues in excess of $1.4 billion last year and, despite a persistent industry-wide contraction, Mr. Allen is forecasting 2007 figures of around $1.6 billion“
So if the developer is smart, they can survive the slump. But here is a case of a developer that made too many promises. By claiming “Guaranteed rental income. . . . Anticipated appreciation” to investors. Now they are in trouble and will take all the investors down with them. In my case, I’m going down alone. Read more:Finally
Condo Auction 2007-08-13 08:15:51 I was shocked to hear that an auctioneer in Miami can sell 20 condos a day. I guess if the price is right… I was equally shocked to learn that even though the number of condos sold has dropped by 52% from last year this time, the prices have increased by 7%. The current median is $275,000!
The auction info I found is:
Auction
Date / Time: September 20, 2007 @ 7:00 P.M.
Auction Location: Miami Biscayne Marriott
1633 North Bayshore Drive
Miami, Florida 33132
Please call 305.573.6522
Read more:Condo
Della Casa Sues Related Group 2007-08-20 07:44:49 The kitchen designer and supplier for several of ‘The Related Group
’ projects is suing the The Related Group, possibly delaying the delivery of the condo. The construction in question is The Apogee, a super high luxury condo located in one of the most exclusive parts of Miami Beach. They are alleging that the Related Group is stealing the designs and hiring out cheap alternatives. I’ll bet the homeowners are thrilled that the case may delay the delivery, scheduled for within a few months… a little more time to try to sell it.
Condo Vultures: What do they expect? 2007-08-27 09:20:08 I keep wondering what the condo vultures expect to gain from their purchases. How much lower than market value? Just read this article about Peter Zalewski with some examples:
A Colombian doctor put down nearly $1.3 million on 12 condos. That’s $108k per condo….CHEAP!
A two-bedroom, 2.5-bath, bayfront condo listed for $495,000 and appraised for $550,000 purchase for $420,000.
In the article Peter says he expects the company to live no more than 3 years. If he’s the expert (at least a lot of people are trusting him) then I would try to hang in there for 5…maybe years.
Read more:Condo
, Vultures
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