Miami Condo Fiasco

www.Condofiasco.com 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.