Thursday, November 1, 2007

Miami Condo Fiasco is currently one of my favorite websites.

To make a long story short the owner of the blog, Zach, signed a purchase agreement on a pre-construction one bedroom, one bathroom condo in downtown Miami. The condo is about 850 sq feet, and he agreed to pay $375,000 (No it's not a typo) for the unit. He also put down $70,000 dollars of his own money in a non refundable deposit.

Closing on the unit is scheduled for January 2008 and the guy now has two options, walk away from his life savings of $70,000... Or close on the unit, paying $375,000 for a condo that is now worth 1/2 that amount. Basically he is screwed.

However, Zach is trying something new and creative. He is selling 10,000 virtual shares of his condo and a link on his blog for $35.50 a share (he calls them link units).

You have to hand it to the guy for being creative. If you have time give his blog a look, it really highlights how massively out of hand the bubble got in Miami.


Anonymous said...

Jesus Christ is that legal?

Chris said...

Yes, he is in theory only selling advertising on his blog so there is no SEC issues.

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