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Strategies & Market Trends : Mish's Global Economic Trend Analysis

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To: mishedlo who wrote (38459)	10/5/2005 7:12:30 AM
From: MoneyPenny	Read Replies (3) of 116555

Since I am right in the middle of this environment, working for a developer on the redevelopment of the downtown Fort Myers area, I can tell you that the building in question is a white elephant. Very ugly, poor location away from the CBD (or in the case of Fort Myers, what hopes to be the CBD) Painted bright yellow with a screaming blue roof, it looks like Big Bird looming over the river. It is an embarrassment. So many, like the man in the article, have a pyramid going with their money. They have constructed this pending disaster themselves. You typically pay 10% down preconstruction with another 10% due when the building breaks ground. In the case of my developer, all upgrades to the condo are payable in cash shortly after the selections are made (flooring, cabinets, countertop, electrical). At this point the speculator has a serious investment whether they planned it or not. A lot of people are caught by surprise at this point and need to raise capital quick. Buildings are released for resale at specific points in the construction cycle. This buyer had the great misfortune to be selling during the worst hurricane season in memory. My guess this was why the distress price on the condo. There are still people calling from all over the country and europe trying to buy condos. We still must do lotteries but we are behind the other areas of the country in the frenzy. The article is very misleading and typical of what is arguably, the poorest written newspaper in the US. (Columbia school of journalism used to use it as an example of extremely poor reporting and editing). The back pedalling at the end of the article is a sop to the real estate community whose advertising supports this paper to a very large extent. The power of the internet is that a misleading and poorly researched article is quickly disseminated as if it is actually serious news. MP

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