Posted Monday, 3.22.2010
Miami Condos - News Guide Miami
House Flipping was described at the beginning of the housing bubble as “the process of purchasing homes of other properties at a reduced market rate for the purpose of a reselling “flipping” for a profit.” Until just recently house flipping was a thing of the past…
On March 5, just 20 minutes after buying 19 Miami condos for $1.25 million, a Miami investor sold them for $1.45 million, clearing a 16% return of $200,000 before fees.
Fama Group, a Miami-based was the first owner of the Miami real estate properties and the second owner is Rentdepo LLC, also based in Miami.
With 97,000 condo foreclosures in Miami in 2009, bulk buyers such as Fama Group make it their business to buy undervalued Miami real estate properties out of foreclosure and quickly resell them for a profit. Most banks don't want to be in the real estate business. In fact, the developer of the Miami condos that were sold, Mi Primera Ilusion Villas LLC, transferred them just two months prior to Eastern National Bank in Miami.
Peter Zalewski from CondoVultures LLC, a Miami real estate consultant company, reports five other instances where bulk buyers bought Miami condos at reduced prices and resold them within weeks for at least a 40% profit.
Some believe the recent house-flipping frenzy may be good news and a sign that the Miami real estate market is bottoming out. The fact that these bulk buyers are confident they can “flip” these Miami condos for a profit must mean their market value is rising.
Call MLR Realty at: 1-305-673-3303 to speak with a professional real estate agent or to search Miami real estate listings go to: http://www.miamilodgerealty.com/