The Real Deal Miami

Distressed assets may not solve problems

October 02, 2009 12:54PM

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Lew Freeman, Principal of LBF Global

Investors looking at the low prices of South Florida distressed assets can’t focus on the cost alone, according to Lew Freeman, principal of LBF Global, who was recently questioned by the IRS for a $4.8 million civil tax penalty. Speakers at an industry conference in Miami cautioned that foreclosed properties and other troubled real estate assets can come with problems that aren’t immediately apparent, and that banking on a rapid turnaround could set the stage for a seemingly great deal to become disastrous. Freeman said due diligence is especially important as the cycle of real estate prices starts to hit bottom.