The Real Deal Miami

Credit squeeze could ground vulture funds

September 30, 2008 12:09PM

The absence of a compromise financial bailout plan from Congress may make it hard for investment funds — long seen as a potential jump-start player in the region’s depressed real estate market — to buy distressed properties. Peter Zalewski, a partner with Condo Vultures, a Bal Harbour firm trying to buy unsold condos at a discount, said the proposed bailout would bolster banks as they try to survive the national credit crunch and mortgage repayment slump. Peter Wells, a partner in Condo Capital Solutions, a Denver fund shopping for bulk real-estate deals in South Florida, said he had hoped the $700 billion bailout plan would pass because it would make it easier for funds like his to borrow money and buy more real estate, and it would boost demand for real estate itself.