The Foreclosure Crisis Means a Bonanza for Some Enterprising Entrepreneurs

foreclosure

The first region to crumble under the onslaught of the sub-prime fiasco was South Florida. It came to be identified as the earthquake’s epicentre. It left behind a trail of woes – rubble and dust. The housing bust resulted in downward spiralling of property value and joblessness. Continuing foreclosures further mired the situation. But amidst this devastation the vultures are partying.

Vultures have a very vital part to play in the scheme of Nature. That is why Jeff Water of Giving Tree Development in Fort Lauderdale calls himself a ‘White Angel.’ At deeply discounted prices he started purchasing notes and then lowering the monthly mortgage amounts of the borrowers to help them stay in their homes.

But Peter Zalweski running Condo Vultures in Bal Harbor of Florida has no conscience pricks for making gains on the bad luck of others. He is snapping up bargains and making fast bucks. He admits that although the work is not noble there is no doubt that it is profitable.

The opportunities that have surfaced since the biggest meltdown in the housing sector in Florida will continue for about another two years. New foreclosures are continuing to choke the courts of Florida. Jack McCabe is a real estate expert. He said, “Those who never came to grips with the historic bust are improving their golf games or catching a lot of fish. Those who had the foresight to shift gears for the tumultuous marketplace have found opportunities to start and grow businesses. Some are going to make fortunes.”

Zalewski was formerly a business journalist. He founded his real estate firm in 2006 – a couple of months prior to the crash that he had foreseen would come. Over the last three years he has employed 36 operators to keep pace with the rising demand from investors ready with cash who are hunting for bargains. The name of his firm, Condo Vultures, caught the attention of film producer Michael Moore. Zalewski is shown in the documentary film ‘Capitalism: A Love Story’. Zalewski is seen in the film surrounded by houses with foreclosure signs. He sits in a swank office in a well tailored suit.

Waters founded Giving Tree Development in 2008 out of sheer necessity. He was one of the casualties of Bear Stearns. He soon discovered the possibilities in buying troubled properties one at a time. An investor then buys a note and the home owner gets a knock on the door bearing good news about change of servicer and offer of modification.