Anyone c that a HF bought 120 units in 50 Biscayne? About 40% lower than the sales of the prev. 1/4's price.

Asked by John, Miami, FL Mon Sep 8, 2008

Is it a sign of a bottom or is it a sign that the market has 40% MORE to fall?

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Mott Marvin…, Agent, Sunny Isles Beach, FL
Tue Sep 9, 2008
Thanks for the clarification; I've heard of other developers making deals with ivestment groups in order to unload surpluss inventory throughout Miami.

I think it will only help to get the market stabilized. How much more can it fall? The true test is whether the rental income can cover the carrying costs and still leave a bit over for return on investment.

The artificially inflated prices were fueled by easy and lax credit criteria by lenders. Property values were increasing by the minute (practically). It had to stop somewhere!

I found the article about the bulk sale; referenced below. The developer and a "partnership" worked out the deal!
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John, Home Buyer, Miami, FL
Mon Sep 8, 2008
hf=hedge fund. sorry bout that but the questions only allow so many characters. I kind of thought it was telling about the state of the market when a developer sells 120 units at a steep discount. I don't think it is a positive. At least the maintence will get paid....
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Andre Shambl…, Agent, Miami, FL
Mon Sep 8, 2008
Good Afternoon,

Do you mean Homecomings Financial when you say HF?
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Mott Marvin…, Agent, Sunny Isles Beach, FL
Mon Sep 8, 2008
No, I have not seen that yet. I do know that investors and investment groups are coming intom the market and picking up condominium units in Miami, Bal Harbour, Sunny Isles Beach and the surrounding areas for deep discounts.

I would venture to say- that it is a sign that the market has bottomed already- especially for luxury real estate in a desireable location. I am sure that the bulk of the sales were for lower floor units with inferior views.

BTW; What is a HF?
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