It is like a huge iceberg, where we see a tiny piece of it. It is not what you see, it is what you do not see, that kills you. But first let’s talk about what we see:
For a long time there were no sales. And there were 3 sales at Marina Grande on the Halifax, all REOs, and all went for unbelievably low price. I was happy, because it proved that we can sell there. This was a huge question, as there were lawsuits, and settlements, so it was a mess.
However, when the bank went and foreclosed it, all the liens were wiped out. Well, it was still not the case with short sales.
So, by now there were 2 bdr units sold for $124,000, $125,000 and $133,250. Ouch, nearly $500K units went for ¼ of their Pre-Construction price.
All 3 sales were cash deals, of course, as with the string of lawsuits, and quite a bunch of liens, financing a condo project like Marina Grande on the Halifax is very unlikely.
And when we thought that we seeing the light at the end of the tunnel, bang!!!