Is there a billionaire strategy for real estate investing? Here’s a simple solution to investing in real estate: do the opposite as the consumer. Buy when everyone is selling and sell when everyone is buying. Most speculators easily forget this simple real estate ‘investment 101’ formula.
This article informs skeptical buyers about what the elite investors are doing with Miami real estate investments.
Jorge Perez, CEO of the Related Group. If you don’t know the name, you should. Perez is the biggest high-rise condo builder in Florida and among the biggest in the country. For the past decade, he has been closely watching the industry. Perez has demonstrated a knack for spotting trends and quickly taking advantage of them. During the boom of 2001 to 2005, Perez and his company, the Related Group, built some of the best (over one dozen) pre-construction condo developments in Miami-Dade County. This includes mega projects in Downtown Miami and the Brickell area. He is known for teaming with Trump & Dezer for the new Trump Towers I, II & III released this year among dozens of other incredible real estate monuments in Florida.
Real Estate Investing by Jorge Perez
Yesterday’s article in the Miami Herald interviewed Perez, who is now making a 1 billion dollar bet that the South East Florida region’s real estate market is a bargain.
“Condo builder Jorge Perez said South Florida real estate is undervalued, and he’s setting up a $1 billion fund to start buying properties” Perez was quoted, “I strongly believe that Miami real estate is undervalued and Three years from now, people will look back and be amazed.” MiamiHerald.com
The Opportunity Fund
His decision to launch the “opportunity fund” as he calls it, should be interpreted as a sign of confidence in South Florida’s condo market, not a reason for worry. Perez’s strategic plan is premised on the long-term growth and success of the South Florida real estate market. Perez said the investor group intends to hold units for two to five years at a loss and then sell at a profit when he bets the market will have improved. Perez said he has not decided to use the investor fund to buy what he built, although he anticipates as many as 20% of buyers default on his developments. The developer said he would rent an unsold unit without the investor fund. With this mindset, Perez is diversifying his portfolio geographically by launching more than 10 projects in Latin America.
Timing The Market
I think you’ll never find the bottom of the market. At some point, you’ve got to decide to Think Big, Aim High, and Act Bold with a long-term outlook. A lot of unsold inventory will be purchased by the Investor “opportunity” fund plus the rental surplus by The Related Group of unsold developer units in part because of lack of demand, over speculation in a less desirable area of Downtown Miami and Brickell real estate as today’s buyers want oceanfront luxury condos. Interest rates have had the biggest cut since the 1980s.
“Don’t wait to buy real estate. Buy real estate and wait.” – Donald Trump
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