Vulcan Dynamic Realty, a Mexican Company, has tremendous activity in one year of existence on the Clerk's site. They said they planned to invest $150 Million in distressed South Florida property. The players are Emilio Braun, Inaki Negrete, Juan and Jose Zaragoza, Antonio Garcia, Mario and Davila Alonso de Oca. They own 136 properties, they are evicting people after buying the properties for non-payment of rent, they seem to purchase low end properties and have several municipal judgements against them for nuisance, water etc. It looks like those things are inherited from the purchase.
This looks like a real estate flipping operation. I was told by a realtor there is also a Brazilian company doing the same. According to the South Florida Business Journal:
"Vulcan plans to acquire the properties in foreclosure or those that are bank owned (also known as real-estate owned or REOs) and rent them for several years at an attractive cap rate before selling them as the housing recovery takes hold."
If you are bidding on a foreclosure you are probably bidding against one of these wholesale companies. Seems like they have already started selling some. They bought 20492 SW 324th Street for $184,800 (4/2012) and sold it for $295,000 (6/2013). The property originally sold in 2006 for $499,350.
7 comments:
Effective business strategy despite removing individuals from the foreclosure offerings. Banks get rid of distressed properties, the properties are fixed up rented and or sold ultimately improving neighborhoods.
At the FIU State of the Economy discussion on Wednesday, a real estate expert said 30-40% of the buyers in South Florida are Corporate. Between the corporations and rich foreign investors, 71% of the closings have been all-cash. The owner to renter ratio has gone from a 70-30 mix down to 62-38 mix.
One corporation, Blackstone, has purchased more than 40,000 homes across the country. Even with good credit, it is impossible to go up against cash buyers willing to pay slightly more than the asking price.
The actual decline in the rate of Homestead Exemption filings associated with single-family home purchases would be interesting to know.
Vultures and banks destroying the fabric of American society
They can sell these houses and condo to strawberry pickers from Homestead. It worked in California during the boom, why not now, and again?
I have trying to buy a house since may, I have put full offers in, sometimes more than asking, paying cash for a house for me to live in. I am getting beat by it other cash offers and then the house shows up as a rental or the house jumps 50 k in 3 months.
It is crazy. I just want to buy a house, not get into bidding wars. Lennar is almost sold out in homestead and is opening new developments.
Some of the investors are putting in offers , only putting out 1000k and then walking away from the deals 3 or 4 months later... Leaving people like me scrambling to get to the property the minute it hits the market.
The neighborhood that has the other $499,350 2006 homes took two comparable hits for an average of $240,000 because of these real estate vultures.
Last Anon, you should be working with a good Realtor who can let you know what's available the minute it hits the market. And help you throughout the home-buying process. Realtors earn their commission in this market if you are a serious buyer.
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