Looking to Build an Investment Group to Qualify for Bulk Pricing

June 9, 2009 by Lucas Lechuga

I was made aware of 53 units that just became available in a high-end, recently completed condo building in Miami to be sold at approximately 50 percent off initial preconstruction prices.  The only way to qualify for the bulk pricing is to purchase 5 or more units as an individual person or a group.  Since this opportunity was made available, 29 units of the 53 currently have pending contracts.  I am looking for individuals that would like to come together to qualify for bulk pricing.  If you or someone you know would be interested in taking part in this opportunity, please call my office at 305-428-3860.

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45 Comments on "Looking to Build an Investment Group to Qualify for Bulk Pricing"


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Anonymous
makes me think
7 years 3 months ago

I’ve always wondered why a group of prospective buyers on this site didn’t get together to target a particular building to negotiate a bulk purchase. I know the logistical nightmare it would create trying to organize a group of individuals (especially the varied personalities we have on this forum). It would seems that someone whould have investigated that possibality especially since there are so many people are waiting on the sidelines for a good deal.

by the way what is the building in question? Is that top secerete?

Anonymous
salvador
7 years 3 months ago

Hola. ¿Cuál es el edificio? ¿Es secreto?

Anonymous
Samson
7 years 3 months ago

I’d join a group for this purpose.

Anonymous
Wild Bill
7 years 3 months ago

You want to spread your risk among different buildings.
Buy more than one unit in a building and you join failboat.

Failboat
A failed organization or group of idiots. Doomed to failure and full of ineptitude, they still continue to sail away on the sea of stupidity.
In extreme circumstances, one man can be categorized as a failboat in and of his/her self.
Pictures of capsized or rolled boats usually shown as an example of what happens when the crew does something.

Anonymous
Alberto
7 years 3 months ago

It should be Brickell on The River, please confirm
Thanks

Anonymous
makes me think
7 years 3 months ago

no not brickell on the river.
sweet deals though. I’m not even in the market but these prices got me thinking, could this be an investment opportunity/chill out spot for the 3-5 times a year I visit? Carry cost is still $600 HOA+ $600 taxes + $100 utilities/incidentals. This should be cash flow positive assuming near full occupancy.

AJ, you spoke too soon!

Anonymous
Kramer
7 years 3 months ago

Alberto he said “High End” of which Brickell On River is not

Anonymous
shwin
7 years 3 months ago

If it is 900 B – i am in.

Anonymous
AJ
7 years 3 months ago

great idea!

Anonymous
Joe
7 years 3 months ago

Can someone put “50% off pre-construction” in perspective relative to today’s prices? It sounds interesting, but I can’t tell how much of a good deal it might be. Thanks.

Anonymous
kevin
7 years 3 months ago

Lets see who has the Smart Money. Or the ones who claim they have money put in on it sense they claim they are wealthy.

Anonymous
jbhmath
7 years 3 months ago

Can someone tell me what building this is? Thanks.

Anonymous
elvis in miami
7 years 3 months ago

yeah, if Miami market has fallen 40%+ in the last 2 years, then 50% off pre construction prices is just a slight discount from today’s prices (more like prices by the end of the year).

Anonymous
Michael
7 years 3 months ago

Lucas,

Based on the purchase price and taking into account all monthly expenses, considering a cash purchase, would this bulk discounted price result in a cash positive investment?

Anonymous
Renter Tom
7 years 3 months ago

The discount would have to be significant since prices are still declining and cost to hold are high. The alternative would be to have each person buy one unit and occupy it for min of 3 years might make it worth while. It all comes down to the purchase price people…..

Anonymous
Danny
7 years 3 months ago

quieck questions:

what is the average rent per sqf in that building and what will be the purchase price?

Anonymous
Mr. J L Whinston
7 years 3 months ago

This will seperate the MEN from the BOYS!!!! Money talks and BULLS$@#^walks.

Anonymous
makes me think
7 years 3 months ago

AJ, did you get to talk to Lucas about the offering?
I would like to know what you think about this deal. I know you said you did lots of research in this area before you bought so I would like to know your opinion about this deal.

Anyone else have any feedback about this

Anonymous
Kramer
7 years 3 months ago
If pre-construction pricing on this building was approx. $400. per sq foot then your buying in at $200. per sq foot on units that are “leftovers”. Jorge Perez Vulture Fund purchased his bulk units at 50 Biscayne for on average $250. per sq foot and the Marina Blue bulk purchase was for on average $200. per sq foot. If the major bulk buyers swarming the market are not buying these units you have to ask yourself why. Not just these particular units but why are they not buying bulk in any of these buildings? Plenty of inventory for sale. It… Read more »
Anonymous
makes me think
7 years 3 months ago
Now, I see why some people hate real estate agents……WTF!!! Long story long, spotted sweet foreclosure, great home, great neighborhood bank recently dropped price drastically. I told my neighbor if he writes up the contract he can collect the commission, about 4k for him. Easy money, I’m offering several K above asking with no closing cost to seller. I told him he needs to move on it because the bank want to move the property (steep price reduction). 2 days later dude wife’s calling me going over shit I already went over with him. Called him this morning to see… Read more »
Anonymous
Miami2009
7 years 3 months ago

Wow, makes me think sorry to hear. You would think in these times they would be more aggressive and be on top of any potential sale!

Anonymous
grrrr
7 years 3 months ago

Same here. It’s very hard to find a competant realtor. A lot of them got their license during the boom and have no clue. By the time I get them to contact the listing agent, the property is already under contract. 3 days to schedule a showing is ridiculous. And you can forget about them showing you other properties. I tell them I want this area and they show me stuff from the other side of town.

Anonymous
makes me think
7 years 3 months ago
Kramer, I don’t know if I agree with your “leftover” statment unless you mean those that haven’t sold. Maybe your argument is valid from an investment standpoint. If you are someone looking to buy and live in this neighborhood then I’m not sure if your argument applies. How often does the little guy buying a single unit to live in get to buy at the same price as the big vulture funds buying 60 units? At some point if you are going to buy, you buy otherwise you will always be sitting on the sidelines. Some people are able to… Read more »
Anonymous
elvis in miami
7 years 3 months ago
makes me think: I know the problem. We went through 4 real estate agents all of whom kept assuring us it was the time to buy (>1 year ago). We said sure, show us a good deal. After looking at many homes we had a few to put offers on (between 80-90% list price). Our agent said no way, they won’t take it. We said let them tell us that…here are the comps we are using and this is a price above the comps. If they reject and want a counter, please provide a list of comps to justify so… Read more »
Anonymous
makes me think
7 years 3 months ago
I really don’t understand it either. I don’t bother to ask them to take me around to look at houses or bring houses to my attention, I know better than that. I do all the research myself, I just need someone to get me inside the house when i can’t get the code myself. Hell they can stay home and just phone it in all i care. I had a similar problem when I bought my current home. I was living up north and decided it was time to move south and settle down. I searched for homes online and… Read more »
Anonymous
Joe
7 years 3 months ago
No offense to Lucas, who runs a great site here, but I believe the #1 paradigm shift that will come out of this real estate bust is the old “7% or 8% is the standard commission” nonsense finally will die. In this day and age, there’s absolutely no reason that selling a piece of property, especially residential property, should cost anywhere near 7% or 8%. The idea that some r.e. agent should get 3.5% or 4% of a $500,000 or $1 million (or more!) sale just for typing the damn entry into the MLS is so absurd it’s laughable. IMO,… Read more »
Anonymous
elvis in miami
7 years 3 months ago
Joe: I wish for the day that real estate transactions can be much simpler. With websites like redfin.com, zillow.com, ziprealty.com, there is momentum to break the old rule of 3%+. Agents do have overhead and currently provide access to MLS and other legal paperwork. In general when closing on a house you still use a real estate lawyer. Quite honestly I would be happy paying my 3% commission if the real estate agent worked like a business person (professional, returned calls, kept their word, saw the deal through). This would also assume that they would preview all homes and save… Read more »
Anonymous
GM
7 years 3 months ago

I heard Corus took over Paramount Bay. Can anyone confirm?

Anonymous
Next...
7 years 3 months ago

Now the question is who will take over Corus…

Anonymous
jcrimes
7 years 3 months ago

with all due respect to lucas, i think this idea sucks. there’s a slew of better investments then this.

Anonymous
AJ
7 years 3 months ago

jcrimes,
Nyet.
Read MMT’s no 23. I was going to reply to Kramer but MMT took the words out of my mouth. If there are guys waiting to buy a home to live in, there is no better way to gang up like this and get a bulk pricing. Otherwise no developer will ever talk to you as an individual or give you half off. This is a brilliant idea.

Anonymous
7 years 3 months ago

Wish Lucas luck but I bet he’ll get a lot of guarantees to perform but nobody will come thru with the cash… Welcome to Miami.

Anonymous
7 years 3 months ago

So what’s going on with Everglades. They should have a bijillion units hitting the market. Should turn into a big party rental.

Anonymous
7 years 3 months ago
Anonymous
jcrimes
7 years 3 months ago
AJ group, individual, whatever…real estate is not an attractive investment class right now. outside of having a significant discount on the back end, and significant cost efficiencies on the back end, it doesn’t make sense. buying a couple dozend condos in bulk certainly doesn’t get you there. if you want to make a play on housing, a far more liquid and less risky option is to buy some homebuilder stocks or residential reits. hell, if you really want property, buy some cheap ass stuff in the rust belt. but for the love of jesus h. christ, don’t buy condos in… Read more »
Anonymous
Odd & Sods
7 years 3 months ago

I’ve a better idea, contact the Ace as I heard he has a cash offer in at $125.00

Anonymous
Odd & Sods
7 years 3 months ago
In every real estate deal that I have transacted I have never used an agent but when a sellers agent has been involved and they come to realize I do not have an agent they always try to represent me the BUYER as well as the SELLER that they already represent! When I decline they then tell me that I am leaving money (the other half of the commission ) on the table because the seller pays all the commission. When I explain politely that the seller does not pay a dime in commission they look at me in stunned… Read more »
Anonymous
AJ
7 years 3 months ago

Everyone knows it is the buyer who pays the commission. It is included in the sale price.

Anonymous
Odd & Sods
7 years 3 months ago

AJ I’m impressed as I disagree with most of what you say but you are correct on this one.

A+ for AJ

Anonymous

[…] On June 9th, I wrote about 53 condo units in a newly completed Downtown Miami condo high-rise that w….  Those 53 condos all went under contract within 2 weeks.  That opportunity has passed but I am now aware of a new opportunity.  This time the development is located in Brickell.  I’m looking for investors with $10M or more in capital with an interest to acquire condos in Miami in bulk.

Anonymous
kiki
7 years 2 months ago
Extremely interesting…I have been following miami/miami beach real estate for three years now… I can say that I am exasperated, that things are now affordable for me on a entering teacher’s pay, but NOT the fees. I don’t understand why so many condo nearby all have own pools etc. Is that not what a great COUNTRY CLUB was designed for. The units would be more cost effective if each did not have saunas and two pools… Oh, well just venting. Do you think I can rent a 1/1 for $850-950 in Brickell area? You make me determined NOT to buy,… Read more »
Anonymous
why bother
6 years 4 months ago

So interesting to go back and read the back posts. Real gems indeed. Guys read all the comments once again.

Anonymous
lara
6 years 4 months ago

I regret so much that I did not use this opportunity. You see one did not have to buy 5 units. There was a chance to buy individual units for a little bit higher prices but really not significantly higher. Some time we are blind when the opportunity presents itself

Anonymous
gables
6 years 4 months ago

Lucas, were you able to pull off this deal? Not very easy to do unless you are a professional investment group. too many players needing to line up their own financing or liquidate cash in the right time horizon. seems to me a logistical nightmare. but if you were able to pull if off once, i bet you can still do it again today.

Anonymous
why bother
6 years 4 months ago

gables, the time for that has come and long gone. You could have done it in 2009 when developers had a lot of inventory and they are cutting deals. right now their inventory is running low and they have no real incentive to off load at hefty discounts. Many are planning to sell in retail for near full asking price to individuals and they are doing it successfully.

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