The cost of NOT doing buisness, or how to lose 1% a month

This post comes courtesy of 140 per sq foot.

Here is a really exciting sale in LHP. 2335 NE 27 St
As far as I know, it was NOT a bank short sale, just a f@cked investor.

● He paid $1.95 in 5/2001

● Sold last month for $1.6 mil.


[This is an illistration] in a most dramatic fashion how much sellers lose due to "holding costs".

We figure holding costs to be about 1% of the purchase price per month.
Whether a buyer paid cash or credit, it still costs since that cash could be in stocks or bonds earning 6-10% return.

So for every $100,000. paid for a home in S Fla, it's costing the owner (or should we say renter? LOL) $1000 per month. Cost of money, taxes, insurance, utilities, and maintenance.

The home I speak of cost the buyer $20,0000 per MONTH for the 66 months he held it, only to sell for $400k LESS than he paid.

● Total loss on a $1.95 mil investment= $2.87 MIL

Thanks 140, for the post!

Reminds me of the joke:

Did you hear about the Coke-Head who inherited ten million and proceeded to turn it into a small fortune?

Another seller at the of the line -The MCP