Jun 12, 2009 11:12 pm US/Eastern
Next Wave Of Condo Flippers May Be Hitting Miami
MIAMI (CBS4) ―
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Downtown Miami
David Sutta
Some might say this is sign that the real estate market is bottoming out in South Florida. CBS4 News has learned that a large investment group is now in the area and is looking to spend half a billion dollars to scoop up steals and flip them.
Approximately 50,000 condos are for sale right now in South Florida, and 10,000 of those are in Downtown Miami.
"This is Mint, Ivy," said Nino Rodrigo, of the Prodigy Network, as he pointed to some of Miami's hottest condo towers.
Many of these buildings haven't been able to sell their units because of the economy. Rodrigo is eager to spend an incredible amount of money on them.
"We anticipate we are going to be buying about $500 million dollars in the next 12 months," said Rodrigo, "starting with $100 million dollars within the next 90 days."
The Prodigy Network is a group of overseas investors who are looking to put their cash into South Florida Real Estate, where others have been slow to.
"We believe the prices are hitting bottom," said Rodrigo.
The group started shopping this week, looking for newly constructed, but semi-occupied condos. Typically investors like him fly under the radar, not broadcasting they are scooping up deals. He agreed to speak to
CBS4 because he, "want(s) every developer or every owner to know that we are interested in properties as long as they make sense."
The group could buy entire floors, even entire buildings, depending on the developers. It has every intention of renting the units for a few years and then selling them, but Rodrigo was quick to point out this isn't the kind of flipping that fueled the housing crash.
"The thing is that they are buying into something different now," he said. "We are not giving 20% down to see what happens when the developer finishes the project or not. Now they are looking for certainty."
He has already started making offers in some well-known downtown buildings. You could be hearing of his first few deals fairly soon.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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