I have been carefully monitoring the RE situation in Fla. I know from my sources and from a couple of our own windsurfers that conditions this winter will be very favorable for low prices on beachfront property.

Example: Condo, year built 1985, gulf front, 2/2, furnished, association dues $400/mo, listed price $169,000.

I am anticipating the possibility that a unit like this could be bought from $90K to $120K. It would need to be a cash to buy situation with no loan.

The idea is to spread ownership over 10 or more people. So divide all numbers by 10 then you know your cost. I am capable of organizing, managing and accounting for all that is necessary in the ownership of the codo. The condo would be set up in a corporation and shares would be issued. The condo would be rented and used by shareholders on an organized schedule.

I would be the the person to scout out the pruchase, make the offer, report back to the shareholders and generally manage the situation.

If financing ( getting a loan ) was a possibility I would go for that but I doubt a loan would be available in this type of situation.

I would not expect any appreciation in the property for 10 years and you could be dealing with possible oil issues for 10 years also.

So if you are interested here is what you have to ask yourself.

Do I have the cash to get involved and to maintain the situation over time? ( I can prepare a budget )

Would I like to have a place in Fla ( Cheap ) that I can go to or go with a group?

Will I make money? Answer No, not really. Maybe a little money in 10 years. ( more of an ownership thing that you can go to rather than a money making investment.

Will I have to pay income taxes on this deal? At some point, yes, but not in the beginning. In the beginning it will probably be a loss due to a lot of souls wanting to go down, and renters staying away due to the ecomomy ( which I expect to preform poorly for the next 5 to 10 years ) and the oil issue ( I expect the oil issue to come up again and oil will eventually wash on shore but it will be hit or miss, so we hope for the miss ).

Will I have any liability in this deal. No, it will be set up as a corp with limited liability. Your only moral liablility will be to do what is called for in the corporation. Shares can be sold, given away or abandoned.

So why do this? To have our own place to go as an individual or a group. Don't count on making money. My expectation is that in the end it could be at least break even and the best case senerio is that it could make double in the 5 to 10 year range.

Last note: I have done this before. I am fimilar with making offers, closing deals, rental management, taxes and accounting.

So what do you think?

Yesterdays news said that home sales are down to levels seen in 1968 and interest rates are at three decade lows. What a combination.

The panhandle of Fla. has suffered a double whammy in the fact that economy stinks for pricing and rentals, and the oil issue has caused cash flow for this summer to be almost $0.00. This winter may be the best buying opportunity. These prople are suffering.