If you're one that loves a "steal of a deal," South Florida's real estate market is ready to love you back.
But, the big catch--and in these economic times, it's a Big Catch--you've got to have all cash. But if you do, you can buy a $50,000 condo in Miami Beach, just 2 blocks from the sand and breaking waves. Keep in mind, this is a condo that previously had sold for $172,000. And, in Miami-Dade, Broward and Palm Beach Counties, there are 6000 of these foreclosed or distressed properties on the market.
"This is pure capitalism. If you don't have all cash, you stand no chance, you're going to get crushed," says Peeter Zalewski of CondoVltures.com.
South Florida, and Miami in particular, represent everything that went wrong in the pre-market crash years prior to 2007. From the 1960s to 2002, Zalewski says 11,500 condos were built. From 2002 to 2007, that inventory tripled, to 34,000 condos. And now that the real estate market continues to sputter, there are a glut of condominiums in the overbuilt cities of Miami, Atlanta, Las Vegas and San Diego, where bulk deals are available, at prices lower that what the developer paid to build.
Angel and Santiago Herrera, of Venezuela, recently spent $7 million to buy 39 downtown Miami units. They quickly flipped 17 for a profit and are renting the rest for the next 3 to 5 years when they then plan to sell each for double what they paid.
"The market has never been so down, so when you're so down, the only place you can go is up," says Angel.
Most of the bulk buying that's been happening is being done by foreign investors, who are seeing great investment opportunity.
And most importantly, they're buying with 100% cash.