Flipping in Florida

Posted by: Dean Foust on July 27, 2005

The latest sign of the Apocalypse: In south Florida, where housing speculation is white hot, some entrepreneurs have unveiled a pair of Internet-based exchanges – USCONDEX.com and CondoFlip.com — where individuals can buy or sell condominimums sight unseen. USCONDEX.com, charges condo developers $2,500 a month for each project they want to have listed on the exchange, and then allows prospective buyers to negotiate with the builder via the site. (Later this year, the site will host live auctions.) The other site, CondoFlip, was designed to enable purchasers of as-yet-unbuilt Miami condos find a secondary buyer to whom they can flip the condo for a profit.

Reader Comments

MVergara

August 10, 2005 12:39 PM

I am at a point in my life where I am ready to settle down and buy a place but with all this bubble talk I am afraid of buying a place now. Realtors keep on calling me and I am pre approved for my mortgage. Before I buy I want to do more research about the local market, can you recommend sources of local area real estate history and predictions?

thanks.

florida real estate

March 4, 2006 3:44 AM

I think you should use internet search - Google can give you all the information you reqire.

Hemley Gonzalez

March 11, 2006 3:59 AM

While the pre-construction market is trying to find its place in Miami's real estate landscape, we will continue to see entrepreneurs develop websites to cater to it. I believe they are necessary, as this product may have some initial differences from its resale counterparts.

Also worthy of mention are the city's main and long-standing affordable condos, which constitutes a hefty percentage of all the sales that currently take place.

Years ago, I created www.affordablecondos.com to be a go-to portal for reasonably priced condos in Miami and the Beaches. Today, we welcome thousands of buyers and sellers every month who are glad we're not just another site catering to the hype and glamour that only represents a small segment of the town.

Hemley Gonzalez, CEO
www.affordablecondos.com

Mabelle - Realtor

May 8, 2006 7:29 PM

Is "Flipping" Real Estate really that Smart?

The temperature in Delray Beach, Florida hit 100 degrees last summer. But still, buyers lined up and waited outdoors for days. Many buyers would spend $350,000 for one-bedroom condo jut to resell the unit immediately.
"Flipping” is a real estate lingo that means buying and reselling properties quickly for bigger profits. There are even points were people bought and flipped contracts before they were built. This is very rampant in South Florida and in other popular real estate markets.

Miami's preconstruction market has seen high investor returns in the United States. More than 80% of condo units that were purchased were only speculative investments. People who bought them did not even have any plans of living in those units.

People go for this method since they see more than 400% investment returns. They are able to get back the money they spent in constructing the condo for a year four times bigger. It is for this reason desperation hit South Florida and other big real estate markets. However, the place is still where people buy units where they actually plan to live in.

By Mabelle Sese
FloridaRealtyFinder.Com

Tracy - Miami Real Estate Agent

June 16, 2006 12:38 AM

Condo flipping was pretty lucrative in South Florida area...Now it is just a trouble..

wanda

August 7, 2006 6:16 PM

I subscribe to an online resource called NeighborhoodScout. they give an appreciation ranking for a specific area, and identify good performing areas based on historical data and past periods of appreciation. it also gives you a good idea of how an area has done in past downturns. Those that hold value the best would receive higher ratings than those areas that may be appreciating well in an upswing but that seem to dive dramatically at the slightest down turn. i don't use this info alone to rate a property buy i do find it useful in my research. The appreciation ratings have been fairly accurate but the other areas such as crime ranking and schools take in too broad of an area and have not been as accurate. However, most of that information can be found in other links. This is the only resource that I have found that actually rated historical appreciation.

R. Agsalud - Miami Real Estate Agent

January 15, 2007 10:10 PM

Real Estate “Flip” sales declined in ‘06
2006 did not turn out so well for speculators as “fliping” of homes in California went down to its lowest level since 2003.

In a report released Thursday by HomeSmartReports.com, a research company based in San Juan Capistrano, homes resold in 2006 accounted for 3.2% compared with 4.2% and 3.6% in 2005 and 2004, respectively. Resold homes in 2006 slightly inched up 2003’s figure of 2.4%.

“flip” sales decline was a result of the slow growth in price levels throughout California. November’s available figures showed home sales in Southern California slumped to the lowest level in nine years, according to DataQuick Information System. Report said that San Francisco Bay Area home prices dropped for the second time in three years in same month.

In 2006, flipers sold homes for a median $45,000 more than they paid, compared with 2005’s $52,000, according to reports.

Ma. Roma C. Agsalud

Naples, Fort Myers Home Inspector

January 21, 2007 12:25 AM

I know this is an older post, but as a home inspector in the Naples, Fort Myers area it's interesting to look back. There are soooo many investors that are losing their butt right now. In many cases it is deserved too. If you paid almost $500K for a condo that sold for $150K 2 years ago - sorry but that level of stupidity deserves to get burnt. Who in their right mind would pay $500K for a dumpy little low quality 1200 square foot condo several miles inland? (Hey it happened, I could take you to the dumpy little development in Bonita.)

Bruce Lunsford
www.ableinspector.com Fort Myers, Naples, Cape Coral Home Inspection

Miami Beach Real Estate Condos

May 30, 2007 8:37 PM

Well it looks like CondoFlip.com is no longer on the web. The reason is simple. People that own units and are in trouble will not realizes how bad they are in the red until the last minutes o condo flip worked on the premises that owner will sell at discounts way in advance of the last hour. NOT TRUE!!!

We see these types of cases for every one out of about 50 or 60 property owners that are looking to sell. Most owners in this situation will wait until the last minute before they realize they can not sell in time before the foreclosure.
By this time it is too late.

Our advice has always been if you have to sell your property even at a minimal loss to avoid foreclosure, do and do it fast. If you wait until it is too late you will loose your deposit, profit and risk having bad credit for 10 years.

DO NOT BE GREEDY!!!. Call it a day, and take your loss as a positive IRS ride off on your taxes.

Remember you may loose the Real ESATE battle, but you will not loose the REAL ESTATE WAR if you plan ahead.

Kim - Miami Beach Real Estate

August 18, 2007 10:04 AM

The market is down..It will stay down 3 more years here in South Florida. Good luck to all of us...

home renovation & remodeling contractors

December 18, 2009 3:03 AM

preferredbuildersoftexas.com is the only Texas custom builder and local home renovation & remodeling contractors providing Kitchen Remodeling, Bathroom Renovation, Custom Additions, Patio Design, Sunroom Installation, Energy Efficient Window Replacement, Siding Replacement or Update services in Texashttp://www.preferredbuildersoftexas.com"

Post a comment

 

About

BusinessWeek editors Chris Palmeri, Prashant Gopal and Peter Coy chronicle the highs and lows of the housing and mortgage markets on their Hot Property blog. In print and online, the Hot Property team first wrote about the potential downside of lenders pushing riskier, "option ARM" mortgages and the rise in mortgage fraud back in 2005—well ahead of many other media outlets. In 2008, Hot Property bloggers finished #1 in a ranking of the world's top 100 "most powerful property people" by the British real estate website Global edge. Hot Property was named among the 25 most influential real estate blogs of 2007 by Inman News.

BW Mall - Sponsored Links

Buy a link now!