Distressed property a growth area, but still a risky proposition

While South Florida’s residential sector has seen a drastic improvement
in the last two years, there remains a significant portion of distressed
real estate — and that segment of the market is still a growth area,
the Miami Herald reports. But looking for deals in that market is not
for the faint of heart. “Buying distressed debt is a very risky
business,” said Ezra Katz, chief executive of investment firm Aztec. “A
lot of people don’t understand the deals. They smell a bargain and they
take a risk. Unless you really know what you’re doing, stay out.” [Miami
Herald]