Treasure Coast Real Estate Editor - Featuring Julie Gaumond, REALTOR® -

BankUnited recently filed a $34.9 million foreclosure suit against the developers of the Latitude Delray, a 47 unit condo/townhome project. Only nine of the units were ever sold for prices ranging from $450,000 to about $600,000. Think about that for a moment. Even if they sold all of the units at the high end that would have only come up to $28 million, about $7 million short of the money BankUnited gave the developers!

And here's the real rub. Where did the $35 million go? It didn't cost anywhere near that to develop this project, but with developers able to pay themselves and their friends and relatives whatever they wanted in fees and bonuses, it's obvious just how profitable the Condo Con was for developers from Miami to Seattle.

This is not a lone example. Corus Banks loaned out billions of dollars on condos that would be lucky to sell for 50% of what the developers pocketed. I have said for several years, that the loans did not make sense. If you've been on any of my conference calls, I put it like this:

1 - Developers were razzle-dazzling bankers with fancy projects that looked great on paper.

2 - The banks were courting developers to take their money.

3 - The developers took the cash and hired as many friends and family as they could find. The skim from these deals made the early days of Las Vegas look like child's play.

4 - The Banksters were happy because they were earning bonsues based on making deals, even if they were bad deals. The Glickman family at Corus Banks are perfect examples of how the game was played at the top.

5 - Once the units were built, the developers didn't care if the projects failed, because they had already skimmed their money, and the Banksters didn't care because it wasn't there money that they were loaning out. The losers are you, me and taxpayers that will be paying for this circle of fraud for the next 10, 20 maybe 30 years.

By the way, BankUnited went belly up and was seized on May 21, 2009 by the FDIC. The developers got fat and happy. The execs at BankUnited got fat and happy. And we get stuck with project worth 10-30% of what was loaned out on them. Even if the Latitude Delray project could sell out the remaining units today, the best they could hope for would be a total of $18 million on a project that gobbled up $35 million. This is just one small of example of what is yet to come as the Florida Condo Con unravels.

Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website FloridaHomes.PRO

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Great Time to Buy? - Yes, No, Maybe. I suggest you read this piece I wrote about how to find a Great Buy and what traps to avoid - Click Here

Until recently most all Publix shopping centers were owned by real estate investment trusts or private investor groups. With the glut of commercial real estate going belly up, Publix has two very attractive options.

First, they can purchase shopping centers from their landlords that are strapped for cash. And they can purchase at distressed prices.

Second, they can build their own shopping center and manage complimenting tenants accordingly.

Either way it is another Win-Win for Publix. In fact, Publix can issue bonds at 4-5% and build their own shopping centers, while most landlord REITs need 2-3 times that rate of return, and these REITs depend on Publix for the lion's share of that return.

Let's hope Publix continues to be a great corporate citizen with superb stores, excellent customer service and community involvement. Personally, I hope the community involvement gets cranked up a notch.

Looking for a home or investment property in Florida? - I'd welcome the opportunity to assist you. For additional information please call me 772-260-5448 or visit our website FloridaHomes.PRO

Sign Up for Mike's Florida Real Estate Blog - Click Here

Great Time to Buy? - Yes, No, Maybe. I suggest you read this piece I wrote about how to find a Great Buy and what traps to avoid - Click Here

The Keep Martin Beautiful organization is coordinating participation in the International Coastal Cleanup from 8 a.m. to noon on Saturday, September 19th at beaches and rivers throughout Martin County. More than 1,800 volunteers participated last year.

For information: (772) 781-1222

http://www.keepmartinbeautiful.org/


Looking for a home in Florida? - I'd welcome the opportunity to assist you with a purchase of a home or condo. For additional information please call me 772-260-5448 or visit our website FloridaHomes.PRO

Sign Up for Mike's Florida Real Estate Blog - Click Here

Great Time to Buy? - Yes, No, Maybe. I suggest you read this piece I wrote about how to find a Great Buy and what traps to avoid - Click Here

This year promises to be even better than last . . . and that's not going to be easy. Hundreds of vendors with food, boating equipment and nautical goods and services will be at the Martin County Nautical Flea Market and Seafood Festival from 9 a.m. to 6 p.m. from Friday, September 18th through Sunday, September 20th at the Martin County Fairgrounds.

There will be live music and lots of food. Admission is $5 online or $7 at the gate.

For tickets and info - http://www.flnauticalfleamarket.com/

Martin County Fairgrounds
2616 SE Dixie Highway
Stuart
(954) 205-7813

After a 12 hour meeting, the Martin County Commission gave initial approval to a $348.5 million budget. The property tax rate increases by about 5% to $7.58 per $1,000 of assessed value.

The problems facing all local governments are falling property values and a faltering economy. Combine that with increased costs for public services and compensation plans for police and fire that are out of control.

Mike's Florida Real Estate Blog - Click Here

Great Time to Buy Real Estate? - Yes, No, Maybe. I suggest you read this piece I wrote about how to find a Great Buy and what traps to avoid - Click Here