Victims...or part of the problem

[alexfardreamer@aol.com]

As I mentioned in another thread ("The dark side..."), the downturn in the housing market and the predictable trend of unsavory or at least greedy "flippers" are the Story of the Day in South Florida's newspapers.

Consider: some people in Brooklyn and other places in New York decided to plunk down deposits on Miami-area condos being built near downtown, not to live in but to re-sell for profit. According to the story by Miami Herald staff writer Patrick Danner:

"Brooklyn housekeeper Rita Dobrer was swept up in South Florida's real estate frenzy, using $600,000 from a jury award as deposits on six condominiums in two Miami projects in 2005.

"Dobrer said she never had the intention, let alone the financial ability, to buy the six condos -- which cost about $3 million. Rather, she claimed she was enticed by the developer's verbal guarantees that she could reap $600,000 in profits by selling the units without ever taking ownership."

Now Dobrer and other investors are suing to get out of the contract because they can't afford the units - even though they signed and initialed documents in which they specifically note that no guarantees were made regarding flipping.

My take? Both the buyers and sellers are to blame. The sellers/developers for using pie-in-the-sky sales techniques and making vague verbal promises of riches beyond the dreams of average people, and buyers for letting their ambition override their common sense.

I'd copy/paste the story here, but that violates copyright law so I'll just post the link here:

http://www.miamiherald.com/business/story/294125.html

[Lady Flipper]

You can post excerpts as long as you link to the whole story....

I agree, they are both at fault and equally. And it wasn't and still isn't an uncommon thing to do, it's like buying futures in the commodity market.

Lots of builders raise money this way today, and I say, flipper beware!

[alexfardreamer@aol.com]

Originally Posted by Lady Flipper

You can post excerpts as long as you link to the whole story....

I agree, they are both at fault and equally. And it wasn't and still isn't an uncommon thing to do, it's like buying futures in the commodity market.

Lots of builders raise money this way today, and I say, flipper beware!

Good thing that I did post the URL to that Herald article.

I am, by nature, a sympathetic and understanding fellow, so if those people in Brooklyn had bought the units after being coerced or deceived by the developers, I'd be wanting for them to get their deposits back. But clearly, the first lady mentioned in the story knew she had no more dough to give once the $600,000 was out of her bank account....so what did she plan to do if no one bought the condo from her?