Recently Listed Condo REOs in Miami – August 2009

The 1800 Biscayne Plaza and the 50 biscayne are good deals. But 50 Biscayne HOA is quite steep.

Hey AJ, I thought Indians never bought American. Your amazing sports car that your brag about is a crossfire right? Way to live on the wild side bro.

I’m so depressed I don’t drive an awesome Chrysler Crossfire:

“Crossfire… you’ll get caught up in the… Crossfire” repeated, eventually ending with a dramatic yelling (CROSSFIYEAAH!) and a deep moan.

http://en.wikipedia.org/wiki/Crossfire_(board_game)

AJ, Sorry not to respond to your earlier comments. I completely agree with your assessment about the site. The content has not been up to par within the last 1-2 months. I, alone, have been completely responsible. I accept complete fault. It has been progressively difficult to balance the integrity of the website with the customer service that my clients expect. I’m a Midwestern guy so I don’t agree with or respect the the Miami (Latin Standard Time) that is tolerated in South Florida. I’ve been working 9am-11pm hours lately but honestly I miss taking part in this site the… Read more »

This list is terrible news for original owners. Absolutely terrible.

Real estate never goes down.
It’s a great investment.
It’s a new building and won’t require any maintenance.
You can always rent it out.
Maintenance fees won’t go up.

Agreed – Wild Bill, There are risks involved in real estate. There always has been. Unfortunately, over the past 3 years there weren’t any foreseen rewards. It was always just downside for those educated enough to foresee it. We’re near the bottom, however. In some condo buildings, we are at the bottom. This is it. This is the reason why I allowed myself to be fired from a former brokerage because of writing the truth at the time. I told everyone to not buy and everyone to sell. My broker at the time, fired me because he felt that my… Read more »

It is not possible for certain Condo’s or the housing market in general to have stabilized or hit bottom, real wages dropped 4.7% the most ever on record and unemployment continues to increase and may well pass 12%. These are the two main factors that drive not only the real estate market but the economy as a whole.

Tighten you selt belts folks this train is picking up speed and heading down the mountain for one hell of a crash woo! woo!

Odd & Son’s. You are missing two important concept’s. first, The market has already under-written into real estate prices the lousy real wage/GDP/un-employment statistics, and with each new month we are seeing greater evidence that we have seen the worst and although it is really crummy out there, it’s not as bad as what has been under-written into real estate values (at least at the lower end). second, the lousy statistics cannot account for the massive federal stimulus that includes a huge tax credit for 1st time home buyers, that is clearly boosting the sub-$250K prices. My opinion is that… Read more »

Odd & Sods, I used to work as an options market maker on the Chicago Board of Options Exchange for 4 years. The most important thing I learned right away is that all economic data is already priced into the market by the time you get the info. If you read an article that has a negative or positive response to the market and you truly believe that you have a leg up on the market because you feel that you’re the “first” person to respond to the new information, then you’re the “fool”. ALL information is priced in unless… Read more »

Tex,

Just read your comment. I agree with you 100%. Are you a trader? Most people don’t understand the concept that the “new”s really isn’t new at all. Seems that you do though. You must be some kind of Wall Street person.

AJ, See…now that’s why I haven’t responded to any comments lately…it means that I don’t get any sleep. I get too passionate about this. My clients are gonna hate me today. I get grouchy when I don’t get any sleep. (At least I was able to watch “Wall Street” 4 times in a row though…that’s a good thing). I love that movie. Time to hit the shower…and start another day. I wish you all prosperity and equality today…(that was idiotic of me to say…that won’t happen during this presidency). So, just wish you all respect for those who see beyond… Read more »

Lucas, I know it’s your blog, but it might be a good idea not to express such strong political beliefs. You might alientate some potential clients. Just my 2 cents.

lucas, the banks are keeping huge amounts of foreclosures to prop up the market they also say that 80% or some crazy # of homeowners in usa will be under water by next year plus massive amounts of new foreclosures, you are saying this i s the bottom – you also say you don’t sugar coat the info…….. so if thats the case, then the only conclusion is your wrong……… just because whosale buyers come in a market does not mean we are at a bottom (in miami) we are speaking about miami ?? right ??? lets talk next year… Read more »

Lucas, Haven’t heard from you in a while! Maybe we heard a little too much 🙂 Just kidding. Everybody has a right to voice their opinion-that’s what makes this country so great. But the Obama bashing is a bit much. Remember, he is only reacting to problems which were created under his predecessor, Bush. If Bush had done even a half assed job at overseeing the country and regulations, we would not be in this mess to begin with. And Obama would not have a reason to spend our futures into oblivion. He was really in a no win situation-let… Read more »

FDIC is opening an office in FL with 500 staff to take over failed banks a dispose of their assets.

More reo to come….

been trying to keep updated on this blog while exploring this beautiful country. Was that really Lucas? Wow, sounds more like hatred than dislike. “horrific job”,”I really think this nation is going downhill with him as pres”. Relax Lucas, you might burst a cornary. You are letting your religion get the best of you, besides you are giving the man too much credit. He is not God and George Bush and the repubs couldn’t distroy this great Nation after 8 years of complete incompentency Obama won’t after 6months. You should Stick to selling real estate instead of giving stock tips… Read more »

Lucas, I suspected all along that you were totally hard pressed for time. I myself had one of the worst summers in a long time regarding time and a million things to do. So no need to apologize. Regarding Obama, I am not so sure yet. Its only been a 6 months since he took office and why judge so soon. Probably 1-2 years into the office, we can make some assumptions (I am an independent BTW). I am not totally on board with DJ. Even if I am a card carrying rabid Democrat, I would still do business with… Read more »

gables,
I disagree. We have enough assholes on here expressing their opinion about everything they know nothing about. If anything we need Lucas to curtail some of that not add his 2 cents into the mix. People just got on his ass about not posting relevant info on the blog then he goes off on this tangent about real estate and politics.

Guys, I have a question, My SOBE unit had a bathroom drain back flow and damaged a few tiles in the bathroom unit below. The plumbers could not establish what is the reason for the back flow. I am arguing that as my tenant did not cause any blockage nor that I knowingly ignored any existing problem, I should not be responsible. There is no negligence involved at all. The damage is minor in the unit below and they have home owners insurance too (but probably the repair cost may be less than the deductible). 1) Am I liable to… Read more »

I noticed that the Blue Condominum listing above #1701 states in the disclosure that “CHINESE DRYWALL DISCLOSURE REQUIRED”.

Does anyone know if this building has had problems with their drywall to require this? Is this part of the reasons why the prices in this building has come down so low?

AJ would you do business with someone who is know to be totally irrational? Well that is what Lucas came of as with his rant about politics and the stock market. It is ok to be against the president policies, hell most people are not sure if his policies will work or at least dislike some part of it. Lucas rant came off as more than healthy skepticism sounded, more like a right wing religious zealot who hold on to religious beliefs despite what physical evidence proves. If he is irrational about finances and politics can we expect him to… Read more »

I think this is causing a lot of heart ache. Lucas, If one of us makes a controversial post, we cannot edit it or erase it. In fact I was going to ask you about that, some blogs allow you to edit your own post within a certain time frame. What does your web guy think about that? But as you have the control to edit and erase , why don’t you consider removing #8 as it seems to be rubbing a few people the wrong way. Personally I don’t care and I think we should not dwell too much… Read more »

Ding dong the dream is dead…One for now and one on its way… On another note I am surprised no one has commented on the status or should I say the death of the once Heralded Miami 21 project as this definately changes everything! Adios Mayor Diaz as maybe some people in Miami are waking up…in order to have pedestrian friendly you need to have pedestrians…people not fearfull of walking out at night, shopping, spending money…I say good riddence… The second is that Monstrocity planned for Watson Island, I mean if the billionaire cant pay his rent why even consider… Read more »

AJ, if there is one thing that people do get irrational and bent out of shape about it’s politics….well politics and religion actually. I’m of the opinion that it’s best not to inject either into any business deal, because you never wanna turn off your partners/clients/customers who may feel strongly to the contrary. Don’t get me wrong, Lucas is more entitled than anyone else to say whatever he wants on here, but I could imagine some posters or even casual lurkers might get turned off by anti-obama rants like that and may chose to look elsewhere when it’s time for… Read more »

AJ Review the assn’s condo docs in order to determine assn responsibilities (common areas vs unit boundaries). If the dispute escalates you or the assn will need to determine the exact cause and location in order to assess liability. So I would explore that and definitely not pay yet. Re #3, require your tenant to purchase a renters liability insurance policy that will indemnify other tenants’ property losses for the actions of your tenant. But that is only if your tenant is deemed negligent by the insurer…if he’s not negligent (thereby not covered under the policy) and its not assn… Read more »

My guess is self-made millionaires who buy expensive condos MUCH prefer anti-Obama rants.

Aj, not sure why the tiles below would be damaged by some water if installed properly, isn’t that why they put tiles in the bathroom? You can refeuse to pay, all they can do is take you to small claims court where you will loose. I think the right thing to do is hire a day laborer and have them Killz the stain on the wall and paint over it. Do it yourself and save the cash. You can ignore them till they go away since it is a small problem. If you have a lanlord insurance policy then that… Read more »

JL, you are probably right but the man is still wildly popular and most people still give him the benefits of a doubt. It does not make sense to potientally alienate a certain segment of your client base (even if it’s only 10%) especailly after posting about how he is trying to take his business to the next level. I’m sure most people don’t care about a realtor’s political views when buying RE but why risk it.

That wasn’t Lucas Lechuga. It was Sean Hannity in conjunction with fellow jackass Rush Limbaugh, because that it exactly who Lucas sounds like.

If you make sweeping statements that he’s “the downfall of this nation” please give some data to back up your claim. There’s no substance to your post/rant.

I’d counter and say that unscrupulous, slimy, lying realtors contributed to the downfall of this economy. Obama is just trying to clean up a mess that was greatly caused in part by your fellow “real estate professional” colleagues.

AJ – I take the back flow came up into your unit and the water seeped down to the unit below. That is, no broken pipe that could be a common element pipe? There was water from your unit that caused damage…do the right thing and just pay the $200 or whatever as a final settlement for the damage, get it writing, and move on. If you were the unit below that had sewer water (even if relatively clean) draining into your unit you’d expect the guy above to fix it. Just feel lucky that the guy below will go… Read more »

MMT, that’s the only point I was trying to make. Anyway, lets move on and get back to the topic at hand….you know, Miami real estate.

Drew & MMT tks.
Drew mentioned a renters liability insurance and MMT mentioned a landlord insurance policy. Are they one and the same or different? Any recommendations as to which company I should go with? Does it include liability issues such as this and how much they usually cost (I heard $300/year?)

RT, I am willing to do the right thing. That is why I asked this august forum for opinion. I had conflicting reports on this. One insurance guy I spoke to said ” As long as you are not negligent, you are not responsible and the other home owner will have to rectify the damage by going through their own home owners insurance”. But if the majority of you feel that I should go ahead and repair the tiles that are coming loose down below, I will go ahead and do it, no questions asked. One more thing I have… Read more »

AJ,

The building needs to check out the pipes with a camera make sure there is no blockage. If you renovated the bathroom or it was previously renovated w/o permits you should run to the bank and pay everybody off.
My building also has several units which get back flows.

I don’t know what he means by “landlord policy”. That is probably just a homeowners policy on your investment property. No difference. Your tenant or his property would still not be covered on one of your policies. With a renters policy your tenant is the named insured and he will be personally covered if he’s sued due to property damage/personal injury caused by him. But a landlord receives an indirect benefit of this since liability is transferred from the tenant (who usually has no assets) to his carrier, thereby hopefully avoiding a lawsuit against you (landlord) from an injured party.… Read more »

AJ – You need to have a the appropriate insurance in place as an owner and a landlord, also, the renter MUST have a renter’s policy….I have one and would NEVER lease to someone that does not. Also, the tenant below can decorate anyway they want….tile on the ceiling although is not my taste, is perfectly acceptable and you’d be liable for the damage of whatever is damaged whether the ceiling is just drywall, decorative paint, wall papered or tiled.. You ARE most probably negligent…when was the last time you had a plumber out to inspect and clean the drains???… Read more »

Code regarding tiles on the ceiling. What the hell are you smoking AJ?

They also have codes against gaudy decorating and poor taste, I’d look into it!

AJ renters insurance is not the same as a lanlord policy. You should definately encourage your renters to buy renters insurance but a lanlord policy is meant to protect the lanlord. Not sure how it works in condos. Sounds like you may have a continuing problem with those tiles downstairs. See if you can get a backflow preventer installed somewhere on that line. don’t know if it is possible. RT, Your last post is way to long and booring for me to finish reading. Again you don’t base your arguments on fact. Fact is that healthcare cost is rising at… Read more »

Oh, another Fact! The cash for clunkers that many predicted would be a complete failure has been a smashing success, so much so that they have decided to double the original program. Yea, my $1 Ford stock is looking very prosperious in mine and my wife’s ROTH IRA (tax free). I’m sure their employees might be breathing a sigh of relif right about now. Oh and many banks that took TARP Funds have been able to pay it back with a nice interest payment to the government. Not bad for a complete failure of a program? I even heard AIG… Read more »

MMT in CR – Sorry, but you are wrong. Fact, the real dollar cost of things like an appendectomy are way way down. Basic surgeries are now out patient and minimally invasive resulting in tons of savings and quicker recoveries. The high costs are related to NEW and AMAZING healthcare breakthroughs. Imagine no hip replacements, bypass surgery, brain surgery…..yeah, it would be a heck of a lot cheaper not to do these things but we are on the cutting edge of amazing things…..that costs money. The other issue is end of life care management … what is appropriate for someone… Read more »

All, Their is difference between government debt and private sector debt. Private sector debt has to be payed for by acquiring money in exchange for something – a product or service. Federal government debt and all federal government spending is payed off by issuing currency. Issuing currency for the federal government is done via the federal reserve bank. The Fed has the power to credit bank accounts at member banks. As Alan Greenspan said: Well, I wouldn’t say that the pay-as-you-go benefits are insecure, in the sense that there’s nothing to prevent the federal government from creating as much money… Read more »

“Also, FACT, any economic activity is the result of debt spending. Heck, give me a few trillion and I will cause economic activity to expand, but it is not sustainable. Fact.”

Tell me how it is not sustainable Mr. Obama? You sound just like him. The only way it is not sustainable is politically because of the ingrained fear of running deficits.

If you want to know what our healthcare system should be like, do yourselves all a favor, and speak to a physician, who does not have debt up to his eye balls because he took loans against 5 properties and ridiculous cars. The issue is many of our doctors have acted much like the people on Wall Street have. Greedy greedy greedy. Anyone including Lucas who disagrees with Obama’s healthcare plan or atleast the change to a universal plan does not understand how medicine works. I respect Lucas’s opinions on the markets bcuz of his background on the CBOE, but… Read more »

MMT, good points. People ignore facts that contradict their core beliefs. Its called cognitive dissonance.

RT, give it up man! Next time Aetna sends me a bill for $900/month for individual coverage I’ll tell them you said the real dollar cost for apendectomy is down. Wait that’s what I was paying in 2007 plus I’m sure you know about inflation so that cost must be about $1100/month in real dollar costs. “economic activity is the result of debt spending” Ah, duh! that was the whole idea. Many economist complained because they felt we needed a bigger stimulus package because of the size of the US economy. Many are still complaining because only a small amount… Read more »

Thank all for chipping in. Very informative. Appreciate it.

MMT
the cash for clunkers plan is simply cannibalizing tomorrow’s demand for sales today.

Lucas great to hear from you. Hope we see more updates as your free time expands! As far as your comments, be careful one of these bleeding hearts may report you to the White House policy police! It is funny how we are called right wing religious zealots or worse when we voice our frustration on what is going on with this administration. Why shouldn’t we be frustrated; higher taxes, lower wages, increased debt , 10% unemployment when we were promised 8% max, etc. A punish the middle class mentality! Of course let’s just keep blaming Bush. Where was Congress… Read more »

“the cash for clunkers plan is simply cannibalizing tomorrow’s demand for sales today.” — jcrimes — Yup. 100% right. Just another dumb government handout. —— AJ — Sorry about the leak, but unless your condo has common areas between units or something odd like that, it’s about 99.99% that you’d be held liable if taken to court. It’s been settled law forever that a leak from above is the above unit owner’s responsibility. —— MMT in CR — If you’re so big on facts, you might take note of the fact that Obama has had a NEGATIVE approval index for… Read more »

Miami2009 — You’re exactly right. I think about 75% of the people in the U.S. — including even a lot of the so-called right-wing zealots — are still in denial about the new American reality. Most people seem to think that all they need to do is keep their head down for another year and things will be back to normal. These people are nuts. Almost none of the good-paying jobs being eliminated will be replaced with a similar-paying job when the economy improves. The days of easy credit and McMansions-for-everyone are over. Meanwhile, the federal, state and local governments… Read more »

Chinese Drywall at Marina Blue???

As Marky NZ points out at post # 19 the condo Blue has a chinese drywall disclaimer per the post. The developer of Blue was “Hyperion” who shortly after Blue construction is the developer of “Marina Blue”. Can we assume chinese drwall at Marina Blue if the same developer Hyperion did both projects??? Wow what a bombshell. Anybody have info or details?