A Simple solution to real estate investing. Buy when everyone is selling and Sell when everyone is buying. A simple real estate investment 101 formula but forgotten by the majority of speculators. This article is to inform the skeptical buyers on what the elite investors ARE doing with Miami Dade 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 watched in the industry because he 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 Dade Counties Downtown Miami and Brickell area. He is known for teaming with Trump & Dezer for the new Trump Towers I, II & III being released this year among dozens of other incredible real estate monuments in Florida. Yesterdays 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
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. His plan is premised on the long term growth and success of the SouthEast 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 his that he built although he anticipates as many as 20% buyer defaults on his developments. The developer said he will rent unsold unit out himself, without the investor fund. Perez is now diversifying his portfolio geographically by launching more than 10 projects in Latin America.
My opinion is you’re never going to find the bottom of the market. At some point you’ve got to make the decision to Think Big, Aim High and Act Bold. 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 1980’s.
“Don’t wait to buy real estate, buy real estate and wait” Donald Trump