Video Courtesy of: Brickell Condo Real Estate/Youtube
New York based, Republic Real Estate, is selling shares of Brickell Flatiron #3006. This 1 bedroom/1.5 bath spans 823 sqft, according to the tax roll (and 898 sqft according to MLS) with a westward facing view. Investors can purchase shares starting as low as $106.40 and can go up to $50,000. So far 1363 investors have accumulated the $300,000 goal with an average investment of $208. Each investor is said to receive 2-3% of the rent paid on the unit with the overall goal to resell in 3-5 years for a profit.
According to the tax roll, the unit was purchased earlier this year from the developer for $497,000. It was listed for sale on MLS shortly there after $525,000 with several price reductions ever since with the lowest asking price of $489,000. The status was changed to pending in June with expected closing at the end of September, according to MLS. It is reportedly under contract for $465,000.
But is this too good to be true? Peter Zalewski from Condo Vultures says that he has seen this type of real estate sharing model before and it has ended in lawsuits. But that hasn’t stopped Republic Real Estate from expanded its Miami portfolio, including another property at Rise at Brickell City Centre. The take home message from our Broker at Brickell Condo Real Estate is to use common sense and due diligence before getting into any business deal or contract.