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Speaker 1: Bloomberg Audio Studios, Podcasts, Radio News.

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Speaker 2: Hello and welcome to another episode of the Odd Lots podcast.

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Speaker 3: I'm Joe Wisenthal and I'm Tracy Alloway.

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Speaker 2: Tracy, do you remember our episode with Hitten some tany

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Speaker 2: about how there's this separate world of real estate for

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Speaker 2: the ultra rich in cities like Dubai in New York

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Speaker 2: City and Los Angeles ASP in Miami that's just totally

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Speaker 2: disconnected from like normal real estate markets.

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Speaker 3: Yes, I do. It was an eye opening episode, not

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Speaker 3: least because of all the discussion of the branded apartment

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Speaker 3: buildings and luxury condos and things. And I still I'm

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Speaker 3: not entirely sure I personally would want to live in

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Speaker 3: a Mercedes Benz apartment building or whatever, but it's definitely

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Speaker 3: a thing that's been happening.

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Speaker 2: You wouldn't want to live on the Porsche tower in

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Speaker 2: a Sunny Aisles or the armand sorry, the Armani Casa

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Speaker 2: tower in Sunny Islands.

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Speaker 3: I'm trying to keep I am trying to keep an

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Speaker 3: open mind, and I realize everyone has a very different taste.

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Speaker 3: But I am not a fan of modernism. No matter

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Speaker 3: how hard I try, I don't get the whole white rooms,

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Speaker 3: glass boxes thing, which seems to be like predominantly what

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Speaker 3: the luxury market is, at least in certain cities.

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Speaker 2: It is a lot of glass, all right, So don't

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Speaker 2: move to the Aston Martin residencies in a downtown Miami

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Speaker 2: near or Biscayne Bay. Avoid that.

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Speaker 3: Yeah, I was this close to buying the ten million

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Speaker 3: dollar apartment in Miami, But now that you've said that,

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Speaker 3: I won't know. You're absolutely right. There seems to be

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Speaker 3: this entirely different luxury real estate market in the US,

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Speaker 3: which is still going pretty strong, even in the environment

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Speaker 3: of higher interest rates. And you see these numbers that

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Speaker 3: are thrown around, and it's so hard for me to

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Speaker 3: conceptualize this. But I was looking up there was a

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Speaker 3: seventy million dollar mansion in Miami Beach that sold recently,

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Speaker 3: and then all these like twenty five million dollar mansions

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Speaker 3: and even like ten million dollar condos. It's hard for

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Speaker 3: me to wrap my mind around those numbers.

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Speaker 2: I think I saw that Ken Griffin, Yeah, the Citadel chief.

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Speaker 2: This is a big story, is that Citadel has moved

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Speaker 2: a bunch of its operations to Miami from Chicago. I

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Speaker 2: think Ken Griffin is spending like one hundred million on

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Speaker 2: like a dual mansion property or something like that. And

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Speaker 2: then there are all these stories in Bloomberg reports on

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Speaker 2: them a lot about these New York City finance people

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Speaker 2: that are moving to Miami and maybe spending fifty one

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Speaker 2: percent of the year there for various reasons. But I

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Speaker 2: really want to get more color out what's this? Like,

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Speaker 2: why are people wanting to buy into the Aston Martin building?

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Speaker 2: What's going on in Miami? Where does all this money

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Speaker 2: come from? Yeah, from besides Citadel? How long it can last?

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Speaker 2: I just want to get a better feel for, like

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Speaker 2: what this market. We know that the market exists, and

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Speaker 2: now I want to get a better feel for like

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Speaker 2: what it actually looks like, and like how it all

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Speaker 2: works and how people find these places and all that.

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Speaker 3: Yes, so there are two things that I'm really interested in.

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Speaker 3: So one is the momentum factor and the idea that

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Speaker 3: once you get money pouring into a specific place, it

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Speaker 3: kind of can attract more money. So that's what we

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Speaker 3: were talking about with Hitten Subtani, this idea that rich

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Speaker 3: people basically can like force prices up even further by

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Speaker 3: buying up all this products and compete with each other yeah,

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Speaker 3: and it becomes kind of like the self fulfilling prophecy

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Speaker 3: or self reinforcing cycle rather. And then the second thing

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Speaker 3: I'm interested in is how much this market, if it all,

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Speaker 3: differs from the normal real estate market. Are there certain

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Speaker 3: aspects of luxury real estate that operate differently to say,

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Speaker 3: I don't know, like a three hundred thousand dollars home

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Speaker 3: being sold in like the Midwest or wherever.

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Speaker 2: Right, Like, it doesn't seem like it's the same as

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Speaker 2: just sort of like going on Zillo or something, and like,

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Speaker 2: you know, booking some local broker.

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Speaker 3: Yeah, do millionaires like surf Zillow as much as I

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Speaker 3: do and just fantasize about new houses? Is that how

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Speaker 3: they find them? I don't know.

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Speaker 2: I want to find that out too.

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Speaker 4: Well.

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Speaker 2: I'm really excited because today we really do have the

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Speaker 2: perfect guest to bring us into the world of a

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Speaker 2: high end luxury Miami real estate. We're going to be

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Speaker 2: speaking with Dina Golden Teyar. She's the number one agent

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Speaker 2: at the major real estate frokerage, Douglas Ellman. She's been

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Speaker 2: operating out of the Miami market for nineteen years and

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Speaker 2: she's involved in lots of these deals, So we're gonna

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Speaker 2: learn all about this, Dina, Thank you so much for

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Speaker 2: coming on odlot.

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Speaker 4: Thank you guys for having me. What an amazing introu.

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Speaker 2: Oh, thank you very much. That's always the best way

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Speaker 2: to start that you endorse the intro. Let's just start.

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Speaker 2: You know, I mentioned Citadel and that's a big story.

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Speaker 2: But where is the money coming from? When you talk

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Speaker 2: to buyers? What are the source the different types of

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Speaker 2: buyers who are coming in and splashing millions or tens

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Speaker 2: of millions of dollars on Miami real estate.

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Speaker 4: They are a bit of a homogeneous group. They tend

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Speaker 4: to be, you know, in the forty to fifty age group,

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Speaker 4: they tend to have children that are still in school,

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Speaker 4: and they tend to be from North America.

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Speaker 3: How do they find you? This is something I always wonder.

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Speaker 3: I kind of alluded to this earlier. But for me,

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Speaker 3: when I'm fantasizing about buying property, I go on Zillow

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Speaker 3: and I look at a bunch of corn. Yeah exactly,

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Speaker 3: And it's fun and I probably spend too much time

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Speaker 3: doing it. But is it different if you're a multimillionaire

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Speaker 3: or a billionaire, are you finding real estate in a

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Speaker 3: different way.

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Speaker 4: I think they're probably still as obsessed with Zillow and

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Speaker 4: online sites as you are. But they often have friends

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Speaker 4: already in the marketplace who have bought here, and they'll

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Speaker 4: ask for a referral. And then if they go online

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Speaker 4: and see, oh, this is the agent my friend recommended.

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Speaker 4: Oh she seems to have all the top listings.

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Speaker 2: Is just the reaffirmation you mentioned the sort of demographics.

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Speaker 2: But what are the sources of money? So Citadel versus

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Speaker 2: New York versus crypto, like when it comes to like

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Speaker 2: how these people made their money, what are the different categories?

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Speaker 4: You see? Definitely the technology sector and that oftentimes applies

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Speaker 4: to buyers coming from the West coast, Okay. And somehow

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Speaker 4: it's all tied to the financial markets, right, private equity firms,

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Speaker 4: hedge funds. You know. I don't even ask people what

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Speaker 4: they do because it always tends to be in that

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Speaker 4: category or they'll be I guess, let's call it a

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Speaker 4: fourth category for someone who has sold their business for

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Speaker 4: hundreds of millions of dollars and are ready to redomicile

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Speaker 4: in a sunnier, happier place.

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Speaker 3: Sunnier happier place, Okay, talk to us more about that.

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Speaker 3: If I have a lot of money because I just

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Speaker 3: sold my business. What is the attraction of Florida's and

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Speaker 3: I understand their sun, there's beach. Maybe now you would

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Speaker 3: even consider it like excellent summer weather. And I say

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Speaker 3: that because we're recording on a day when I think

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Speaker 3: New York is hotter and muggier than it actually is

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Speaker 3: in Miami right now, So by comparison, Miami looks great.

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Speaker 3: But what is attracting people to this specific place.

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Speaker 4: It's definitely the same things that it has always been,

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Speaker 4: just a higher volume. Right, It's always been you know,

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Speaker 4: tax advantages and the fact that Florida doesn't have a

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Speaker 4: state income tax. That's nothing new. There's incredible homestead advantages.

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Speaker 4: And the weather has always been good, right, We've always

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Speaker 4: been a sunny place with beaches and nightlife. What's changed

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Speaker 4: in Miami is because it has a trap did a

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Speaker 4: higher profile clientele that now the arts have come up,

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Speaker 4: the restaurant scene has come up, there's a lot more

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Speaker 4: activities for children, Like it's just becoming all around Metropolitan

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Speaker 4: Center instead of a place to just come for a

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Speaker 4: few days to party and then get you know, the

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Speaker 4: heck out.

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Speaker 2: Of Dodge, Right. I think I've mentioned it on the podcast.

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Speaker 2: My family and I when I was a young kid,

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Speaker 2: we would go every year to North Miami Beach, like

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Speaker 2: the Collins Avenue, I think, Oh no, we would go

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Speaker 2: to Sunny Isles and it was fun, you know, as

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Speaker 2: a kid. But it definitely the area did not seem

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Speaker 2: party the way that it does now. Granted I was

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Speaker 2: up in Sunny Aisles, there was probably a little bit

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Speaker 2: more quiet, but that, you know, I know that strip

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Speaker 2: has changed dramatically over the last thirty or forty years.

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Speaker 2: What do they want? Okay, let's say I sell my company.

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Speaker 2: I have one hundred million dollars. I want to have

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Speaker 2: a place in Miami because it's fun and warm and

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Speaker 2: all that. What are like table steaks? What a developer

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Speaker 2: needs to offer me in terms of design, in terms

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Speaker 2: of amenities that they would need to offer for me

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Speaker 2: to consider their building.

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Speaker 4: So that's a really you know, that's a very interesting

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Speaker 4: proposition because the developers are constantly trying to outdo one

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Speaker 4: another and their previous towers. Right, so Miami already has

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Speaker 4: the best high rises in the country. We by far

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Speaker 4: have the most you know, glass skyscrapers that are full

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Speaker 4: of the best amenities, so it's really hard to win

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Speaker 4: your business. So the developers are constantly looking to elevate

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Speaker 4: the interiors, choosing a stark attackt offering new lifestyle amenities

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Speaker 4: like paddle or pickle. That seems to be all the

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Speaker 4: rage across the country, so you're seeing that pop up.

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Speaker 4: It's several new developments across town. They have to keep

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Speaker 4: raising their ceiling heights because people always prefer higher ceilings.

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Speaker 4: It's really hard to outdo what's already been built because

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Speaker 4: we have such incredible buildings already, so they have to

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Speaker 4: come up with more creative ways to do.

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Speaker 3: What's the most impressive property that you've seen? You know,

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Speaker 3: we talked about your nineteen year career at Douglas Element.

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Speaker 3: I'm sure you've seen some amazing houses and apartments in

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Speaker 3: that time.

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Speaker 4: It's so hard because every year a new apartment or

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Speaker 4: a new house is built that is just so much

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Speaker 4: shinier and prettier that I've previously sold. So I think

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Speaker 4: I've walked into the best, and then twelve months later,

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Speaker 4: it's just you know, there's something so much better.

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Speaker 2: Well what does that look like when you say that, Okay,

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Speaker 2: it's something.

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Speaker 3: Is Yeah, what's pretty, Yeah, tell us.

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Speaker 2: About like what it looks like and what you see

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Speaker 2: when you walk in that blows you away.

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Speaker 4: For me, it's about the finishes, right. So I just

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Speaker 4: took a new listing in Beal Harbor Village and when

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Speaker 4: I walked in the house, obviously you know the owner

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Speaker 4: built it to the nines, no budget. But I saw

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Speaker 4: small details that I'd never seen before, like his electrical outlets,

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Speaker 4: you know where you plug in your kitchen appliances. They

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Speaker 4: were completely seamless and built into the backsplash of the kitchen,

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Speaker 4: which I've never seen before. So something that small really

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Speaker 4: caught my attention because it was something new and I

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Speaker 4: haven't seen it in the marketplace.

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Speaker 3: Have you always been in luxury real estate? How did

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Speaker 3: you actually start out?

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Speaker 4: That is a That is a good question. So I

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Speaker 4: started out in luxury real estate, I would say about

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Speaker 4: eight years ago. I did not always work the luxury marketplace.

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Speaker 4: I started as a cocktail waitress in a nightclub called

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Speaker 4: Mint in Miami Beach, and the manager of that nightclub

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Speaker 4: he got his real estate license and I wanted to

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Speaker 4: buy a condo. So I was actually his first client,

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Speaker 4: and at age twenty two, I bought that condo, saw

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Speaker 4: what he did in representing me, saw how much he made,

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Speaker 4: And I got my real estate license shortly after that,

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Speaker 4: and I just hit the pavement. I did rentals, I

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Speaker 4: did deals for two three hundred thousand. I had a

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Speaker 4: steady climb up and my first ten years of my career.

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Speaker 4: And after that I really started getting into the higher

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Speaker 4: price points.

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Speaker 3: And what's the difference between selling something for two hundred

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Speaker 3: thousand versus twenty million or something like that, other than

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Speaker 3: the commission? Presumably, is there a difference in like the

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Speaker 3: process or the experience as a real tour?

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Speaker 4: Absolutely, I mean I don't sell properties in the two

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Speaker 4: hundred thousand price point anymore because my marketplace doesn't have them.

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Speaker 4: The Miami has become a very pricey town, especially Miami Beach,

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Speaker 4: which is what I focus on. But when I did

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Speaker 4: have the dichotomy of working with buyers and lower price points,

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Speaker 4: first time buyers versus very wealthy buyers, those buying their

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Speaker 4: fifth or sixth or seventh home, there's actually, in a

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Speaker 4: way less work because those first time buyers need you

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Speaker 4: to be everything for them, right. They need you to

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Speaker 4: play their accountant and their house manager, and maybe their housekeeper.

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Speaker 4: But when you start working at the upper echelon, those

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Speaker 4: buyers have their own teams and you become a member

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Speaker 4: of that team. And oftentimes I'm the captain of that

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Speaker 4: team for the thirty sixty ninety days that we're involved

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Speaker 4: during a transaction. So in some ways that there's actually

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Speaker 4: less elbow grease involved in the higher price point transactions.

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Speaker 2: That sounds pretty nice to get much bigger commissions in

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Speaker 2: have to like, you know, not because that person they

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Speaker 2: have an accountant and they probably have their own architect

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Speaker 2: who can describe things. So that sounds pretty nice. Less

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Speaker 2: a work for greater commissions. How did you make this switch?

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Speaker 2: And actually how do you get listings? So if I'm

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Speaker 2: the Mercedes Benz Tower or the Aston Martin Tower, and

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Speaker 2: I don't know if you've actually sold anything in those

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Speaker 2: specific ones, But if I'm one of these big towers,

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Speaker 2: how do I connect with you or how do you

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Speaker 2: connect with them so that you're in the position to

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Speaker 2: sell those units.

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Speaker 4: So I focus on single family homes, waterfront homes, the

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Speaker 4: top condos in each building, and the developers they're chasing

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Speaker 4: me to bring buyers, and I'm like, h okay, I'll

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Speaker 4: think about it, because there's so many towers right, So

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Speaker 4: it's not like there's one waterfront home on a specific

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Speaker 4: street with a certain view that someone wants. That really

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Speaker 4: is you know the golden egg, right condos, there's no shortagejob,

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Speaker 4: so the developers have to offer very high commissions, you know,

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Speaker 4: expensive expense accounts to really woo buyers and brokers. So

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Speaker 4: I'm definitely not calling them. They're calling me. But as

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Speaker 4: far as the other side of the coin, a very

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Speaker 4: special home on a specific street, I'm chasing them. I'm

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Speaker 4: knocking on their door, you know, I'm wooing them. So

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Speaker 4: it's just like a supply and demand dynamic.

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Speaker 3: Wait, can you talk a little bit more about that?

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Speaker 3: So how do you decide what properties to take on?

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Speaker 3: What is most interesting to you as a realtor.

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Speaker 4: So I've entered the phase of my career where I

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Speaker 4: actually say no to a lot of business, and it's

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Speaker 4: an incredible place to be because if I'm not passionate

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Speaker 4: about your home, I'm not going to listen. I don't

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Speaker 4: need another listing. I don't need a listing that's not

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Speaker 4: going to sell. I'm very picky about the properties I

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Speaker 4: represent because I want to make sure that they sell.

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Speaker 4: Otherwise it's all in vain. A lot of my you know,

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Speaker 4: it's called competitors. They'll take anything, and that's just not

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Speaker 4: my way of doing things.

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Speaker 2: But to Tracy's question, Okay, you have all these things

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Speaker 2: or sellers who want to get into your network because

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Speaker 2: you have access to the buyers, and we'll talk about that.

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Speaker 2: What are some of the criteria that you use to

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Speaker 2: judge to say, you know what, this is the type

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Speaker 2: of property that I'll take on and list.

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Speaker 4: It's kind of like a piece of art. Right, you

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Speaker 4: walk into a room or an art gallery or an

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Speaker 4: exhibit and you feel something for that piece. Right. You

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Speaker 4: might not know anything about the art world, but there's

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Speaker 4: a feeling. And that's how I feel about people's homes.

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Speaker 4: They say, come over and give me an opinion of value.

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Speaker 4: And if I walk in and I get excited and

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Speaker 4: I feel wow, then I really want the business and

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Speaker 4: I pursue it. I present my marketing presentation naturally, talk

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Speaker 4: about my stats, how much I've sold, what records I've broken,

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Speaker 4: and I really fight for the business.

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Speaker 3: And how do you go about setting a price Because

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Speaker 3: this is something that I feel, particularly in the luxury market.

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Speaker 3: I see these numbers, like seventy million dollars for four

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Speaker 3: to eight South Hibiscus Drive, and it seems very abstract.

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Speaker 3: And also it's always it always seems to be like

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Speaker 3: a round number once you get to the luxury market,

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Speaker 3: you know, so it's always seventy million or twenty five

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Speaker 3: million or ten million. It's never like ten million and

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Speaker 3: five hundred thousand and like two hundred dollars. How do

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Speaker 3: you arrive at those numbers?

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Speaker 4: I just do the basic work. I check the comps,

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Speaker 4: I see what's sold, I see what's available. If there's

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Speaker 4: a lot of available product, I encourage my owners to

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Speaker 4: price better than that available product so that you don't

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Speaker 4: miss out in a season. Because there's only as popular

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Speaker 4: as our marketplace is, there's still, you know, a limited

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Speaker 4: amount of people who can afford homes for twenty thirty

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Speaker 4: and forty million. I share the data with my owners

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Speaker 4: and I let them know, do you want to achieve

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Speaker 4: a sale in the next thirty days or do you

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Speaker 4: want to be on the market for nine hundred days.

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Speaker 4: And if they start giving me the oh, I'm not

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Speaker 4: in a rut. I don't care if it's sells that's

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Speaker 4: not the listing for me.

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Speaker 2: What's the difference between say, let's say some tech guy

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Speaker 2: on the West Coast sells his company and suddenly he's

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Speaker 2: a billionaire overnight. And then there's another person who's high

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Speaker 2: up at Citadel and maybe they're not a billionaire, but

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Speaker 2: they have you know, they make millions a year. Tell

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Speaker 2: me about the difference in what the two of them

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Speaker 2: are looking for. Let's start, what is the tech entrepreneur

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Speaker 2: looking for?

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Speaker 4: To generalize, the tech entrepreneur sure tends to be very

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Speaker 4: into that white box architecture that you're not such a

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Speaker 4: fan of, because it has a lot of natural light, right,

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Speaker 4: it has high ceilings, it has walls for their art

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Speaker 4: collection or their NFTs, And they also tend to be

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Speaker 4: very concerned.

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Speaker 2: They really show their NFTs on the wall.

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Speaker 4: I have definitely seen that I've fallen out of favor

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Speaker 4: a little bit, but I certainly remember shopping with someone

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Speaker 4: in that space and he really needed a big wall

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Speaker 4: to project his NFT collection. So it's a thing they

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Speaker 4: tend to also. So you know, again i'm generalizing, not

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Speaker 4: be married with kids. So they want to make sure

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Speaker 4: that they're in a location that's close to hotspots like

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Speaker 4: the cool coffee shop or the IT gym. The Citadel person.

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Speaker 4: From my experience in getting calls from Citadel employees, they

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Speaker 4: tend to be a different demographic in the sense that

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Speaker 4: they're very concerned about they're completely redomin selling their family.

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Speaker 4: They often have more than one child, the schools are

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Speaker 4: super important, and proximity to their new Brickell headquarters is

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Speaker 4: as well.

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Speaker 3: And so the Citadel effect is something that it sounds

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Speaker 3: like you personally have either experienced or at the very

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Speaker 3: least noticed.

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Speaker 4: Absolutely. I mean, Ken Griffin is the best thing to

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Speaker 4: happen to the Miami marketplace other than Governor.

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Speaker 2: Coma say more about Kim As. We know about Ken

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Speaker 2: Griffin specifically, and he's spending crazy amount of money, but

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Speaker 2: how much overall when you look like the sort of

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Speaker 2: mass listings, do you just see that Citadel affects specifically.

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Speaker 4: He's a little bit past that, right. Some of his

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Speaker 4: big purchases happened twenty four months ago, thirty six months

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Speaker 4: ago before that. But what he's doing now is he's

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Speaker 4: uplifting the community. He's giving incredible amounts of donations to

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Speaker 4: bring up Miami to be a world class city in

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Speaker 4: comparison to cities traditionally at that scale, you know, like

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Speaker 4: a London, like in New York.

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Speaker 3: So one thing I was wondering. We've spoken on this

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Speaker 3: podcast about the increasing cost of insurance, especially in places

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Speaker 3: like California and Florida. Is that something that is even

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Speaker 3: on the radar of luxury buyers or is it? I mean,

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Speaker 3: insurance costs have to move in tandem with like the

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Speaker 3: cost of the properties. So I imagine they're spending a decent

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Speaker 3: amount of money on something like this, but is it

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Speaker 3: just not as much of a concern for them.

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Speaker 4: You know, insurance is definitely on the top of every

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Speaker 4: one's tongue, but it is not stopping them from buying.

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Speaker 4: And these people are so wealthy, so if their insurance

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Speaker 4: premium is ninety thousand a year as opposed to sixty

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Speaker 4: thousand a year, they make gripe about it. But I

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Speaker 4: have not seen a buyer not proceed with a transaction

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Speaker 4: because of an insurance quote.

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Speaker 2: You know, I've known some people not in the billionaire

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Speaker 2: category who have moved to Miami, and I've heard this

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Speaker 2: that when it comes to schools. I've also heard that

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Speaker 2: when it comes to say, pediatricians, and people with other needs,

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Speaker 2: et cetera, that they still don't consider Miami to be

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Speaker 2: on par with say, New York City. Can you talk

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Speaker 2: about like that development of like what you see as

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Speaker 2: like the school and healthcare situation in Miami versus say

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Speaker 2: what it was. I don't know ten years ago.

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Speaker 4: I mean, I've never lived in a marketplace like New

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Speaker 4: York to be able to compare pediatricians. I certainly feel

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Speaker 4: that there are excellence you know, there's healthcare providers in

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Speaker 4: Miami in the surrounding marketplaces. But New York is a

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Speaker 4: city that's been on the map for hundreds of years.

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Speaker 4: Miami is still a virtually new city, right and you

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Speaker 4: have all these you know, haughty rich people moving down

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Speaker 4: and perhaps they expect like a certain level of concierge service,

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Speaker 4: and Miami is still a little bit of a slower

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Speaker 4: paced culture. Naturally, we're very close to the Caribbean, and

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Speaker 4: it's a lot of Manyana, Manyana, so it just takes

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Speaker 4: some time to getting used.

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Speaker 2: So what about schools and you mentioned the key areas

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Speaker 2: that people with school age children want to go to

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Speaker 2: talk to us about some of the different neighborhoods and

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Speaker 2: stuff like that.

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Speaker 4: Schools are a big deal, and we do have excellent

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Speaker 4: private schools. There is certainly a long list to get

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Speaker 4: into a few of them because of the amount of

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Speaker 4: transplants that have moved to this marketplace. It'd be nice

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Speaker 4: if there were more schools that were being open, and

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Speaker 4: I see that as the next trend. I'm hearing, you know,

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Speaker 4: billionaires buying up commercial buildings to open schools that will

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Speaker 4: hopefully open in the next few years. But the two

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Speaker 4: neighborhoods that have the highest conglomeration of private schools our

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Speaker 4: Coconut Grove and Coral Gables. And it's no coincidence that

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Speaker 4: almost weekly you're reading a press piece about those two marketplaces.

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Speaker 4: Most recently, Coral Gables was compared to as the next

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Speaker 4: Beverly Hills, which I don't think anyone would have thought

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Speaker 4: to be a parallel ten years ago.

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Speaker 3: Wow, can you talk to us a little bit more

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Speaker 3: about just the dynamics of the market that you've seen

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Speaker 3: in I guess recent months. Is it still it was

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Speaker 3: going incredibly strong in the immediate aftermath of the pandemic.

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Speaker 3: My understanding is like maybe it's softened ever so slightly

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Speaker 3: in recent months, but by all accounts. It seems to

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Speaker 3: be well insulated from a lot of the headwinds that

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Speaker 3: would face other real estate markets.

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Speaker 4: What have you seen? Well insulated is the perfect word

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Speaker 4: to describe it. As a realtor in you know, the

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Speaker 4: Miami Palm Beach marketplace, I think we all have this

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Speaker 4: panic when quote unquote high season ends, right like maze over.

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Speaker 4: People are leaving talent for Aspen or Europe or the Hamptons,

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Speaker 4: and the realtors naturally get this slight feeling of like,

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Speaker 4: h oh, it's over and we're never going to see

436
00:23:08,400 --> 00:23:10,679
Speaker 4: it this good again. But this summer is proving to

437
00:23:10,720 --> 00:23:13,800
Speaker 4: be incredibly active. It's being fueled a lot by the

438
00:23:13,800 --> 00:23:17,480
Speaker 4: West Coast buyer. They're trying to secure something before the

439
00:23:17,480 --> 00:23:20,240
Speaker 4: school year starts, if in fact their kids did get

440
00:23:20,280 --> 00:23:22,399
Speaker 4: into a school of their choice. So we're having a

441
00:23:22,520 --> 00:23:25,000
Speaker 4: very active summer. A lot of the buyers from the

442
00:23:25,040 --> 00:23:26,840
Speaker 4: winter who thought they were going to be so cute

443
00:23:26,840 --> 00:23:29,480
Speaker 4: waiting on the sidelines for summer are going to have

444
00:23:29,520 --> 00:23:32,000
Speaker 4: a hard pill to swallow because the homes that they

445
00:23:32,040 --> 00:23:34,600
Speaker 4: thought would linger through the summer season are all going

446
00:23:34,680 --> 00:23:35,360
Speaker 4: under contract.

447
00:23:35,920 --> 00:23:40,080
Speaker 3: Okay, so here's a hypothetical, But what would have to

448
00:23:40,240 --> 00:23:43,479
Speaker 3: happen in order for the luxury market to take a

449
00:23:43,520 --> 00:23:46,280
Speaker 3: real hit in Miami. Like, what would be the thing

450
00:23:47,040 --> 00:23:50,959
Speaker 3: that would maybe interrupt the dynamic that we've seen in

451
00:23:51,040 --> 00:23:51,760
Speaker 3: recent years.

452
00:23:52,920 --> 00:23:55,320
Speaker 4: We would have to have a very bad hurricane season.

453
00:23:55,440 --> 00:23:57,840
Speaker 2: Okay, how does your business work?

454
00:23:57,960 --> 00:23:58,199
Speaker 3: You know?

455
00:23:58,400 --> 00:24:01,160
Speaker 2: I know I have some sense of how commissions work

456
00:24:01,359 --> 00:24:04,240
Speaker 2: in a in normal real estate market. How does it

457
00:24:04,320 --> 00:24:07,560
Speaker 2: work at this end? And are your buyers buying in

458
00:24:07,880 --> 00:24:10,520
Speaker 2: cash or do they finance? Ever? Like, how does that?

459
00:24:10,560 --> 00:24:13,159
Speaker 2: How did the is it mostly all cash? Talk to

460
00:24:13,240 --> 00:24:13,800
Speaker 2: us about that.

461
00:24:14,400 --> 00:24:16,560
Speaker 4: So the buyers that I work with, and let's call

462
00:24:16,600 --> 00:24:21,160
Speaker 4: it an ultra luxury space, are exclusively buying cash if

463
00:24:21,200 --> 00:24:23,520
Speaker 4: they are getting a mortgage, they tend to do it

464
00:24:23,800 --> 00:24:27,119
Speaker 4: against their own portfolio with a private banking relationship, and

465
00:24:27,160 --> 00:24:31,000
Speaker 4: they do it outside of closing or post closing. Very

466
00:24:31,080 --> 00:24:33,600
Speaker 4: rarely do I have a closing that is waiting for

467
00:24:33,680 --> 00:24:34,600
Speaker 4: a lender to fund.

468
00:24:35,160 --> 00:24:39,000
Speaker 3: Okay, here's another question about being a realtor in the

469
00:24:39,080 --> 00:24:43,680
Speaker 3: ultra luxury market in Miami. But what's the big challenge

470
00:24:43,880 --> 00:24:47,359
Speaker 3: right now? Because the way you describe it, it sounds great.

471
00:24:47,520 --> 00:24:50,800
Speaker 3: You know, you're earning big commissions on properties with big

472
00:24:50,840 --> 00:24:53,840
Speaker 3: price tags, maybe for less work than you would have

473
00:24:53,880 --> 00:24:57,000
Speaker 3: to put in for a house on a sort of

474
00:24:57,320 --> 00:25:02,480
Speaker 3: smaller pricing scale. But what's the difficulty, if anything, like,

475
00:25:02,720 --> 00:25:05,760
Speaker 3: is there any particular like headache that you are facing

476
00:25:05,880 --> 00:25:09,960
Speaker 3: at the moment or a specific challenge, Well, just.

477
00:25:09,920 --> 00:25:12,480
Speaker 4: To touch base on that, because I certainly wouldn't want

478
00:25:12,720 --> 00:25:16,840
Speaker 4: to give the message that sell more expensive homes, do

479
00:25:16,920 --> 00:25:19,560
Speaker 4: less make more. You know, it's a twenty year trajectory

480
00:25:19,600 --> 00:25:22,199
Speaker 4: that got me here, and oftentimes what I tell my

481
00:25:22,320 --> 00:25:25,800
Speaker 4: sellers to be, you know, the highly confident person that

482
00:25:25,880 --> 00:25:28,680
Speaker 4: I am is I've created this marketplace, right, I've sold

483
00:25:28,680 --> 00:25:30,880
Speaker 4: these homes for your house to be worth so much.

484
00:25:31,280 --> 00:25:34,440
Speaker 4: And that really puts things into perspective for them, because

485
00:25:34,560 --> 00:25:37,479
Speaker 4: if I continue to shatter records and uphold values, when

486
00:25:37,520 --> 00:25:40,480
Speaker 4: it's their turn to sell, they should keep that in mind.

487
00:25:41,000 --> 00:25:43,800
Speaker 4: Does anyone want to pay six percent anymore? No? Do

488
00:25:43,880 --> 00:25:46,480
Speaker 4: they want to pay five percent? Still for a little

489
00:25:46,520 --> 00:25:49,000
Speaker 4: bit longer. But when this new legislation really starts to

490
00:25:49,000 --> 00:25:51,720
Speaker 4: go into effect in the later part of the summer,

491
00:25:52,080 --> 00:25:53,960
Speaker 4: we're going to see what sellers are willing to pay

492
00:25:53,960 --> 00:25:57,000
Speaker 4: if they're not obligated to compensate the cobroker.

493
00:25:57,320 --> 00:26:00,560
Speaker 3: Oh, this is the sit sir Burnett out right? Is

494
00:26:00,600 --> 00:26:01,560
Speaker 3: that what you're referring to.

495
00:26:02,560 --> 00:26:04,240
Speaker 4: I don't even know what they're calling it. I'm trying

496
00:26:04,240 --> 00:26:05,880
Speaker 4: to not pay attention to the whole thing.

497
00:26:06,400 --> 00:26:10,440
Speaker 2: So what is the current commissioned structure at this end

498
00:26:10,960 --> 00:26:14,719
Speaker 2: and as you perceive it, what would change in the

499
00:26:14,760 --> 00:26:17,600
Speaker 2: market structure when it goes into effect.

500
00:26:17,920 --> 00:26:21,000
Speaker 4: At the current state, the majority of my listings are

501
00:26:21,040 --> 00:26:23,160
Speaker 4: at five percent, where I offer two and a half

502
00:26:23,160 --> 00:26:25,639
Speaker 4: percent to the co broker. So if you bring me

503
00:26:25,680 --> 00:26:28,600
Speaker 4: a buyer, my firm makes two and a half and

504
00:26:28,680 --> 00:26:30,440
Speaker 4: the buyer's agents for a mix two and a half

505
00:26:30,480 --> 00:26:32,680
Speaker 4: percent as well. What it will be in the next

506
00:26:32,760 --> 00:26:34,840
Speaker 4: ninety days I have no idea.

507
00:26:35,480 --> 00:26:37,520
Speaker 3: But it doesn't sound like you're very worried about it.

508
00:26:38,320 --> 00:26:41,040
Speaker 4: I think are the persons who are going to be

509
00:26:41,160 --> 00:26:45,360
Speaker 4: affected by this legislation are going to be those who

510
00:26:45,400 --> 00:26:48,600
Speaker 4: don't have many listings and specifically rely on paying their

511
00:26:48,600 --> 00:26:51,600
Speaker 4: bills by working with buyers. I think those agents are

512
00:26:51,640 --> 00:26:54,760
Speaker 4: really shaking in their boots, and people like me who

513
00:26:54,840 --> 00:26:58,359
Speaker 4: carry a strong amount of listings are not as concerned

514
00:26:58,359 --> 00:27:00,080
Speaker 4: about it.

515
00:27:00,080 --> 00:27:05,000
Speaker 2: It's the buyers agents that might be more anxious because

516
00:27:05,800 --> 00:27:08,439
Speaker 2: you have the high end listings and the seller is

517
00:27:08,480 --> 00:27:12,320
Speaker 2: going to pay you something for access to your rolodex,

518
00:27:12,400 --> 00:27:13,360
Speaker 2: so to speak.

519
00:27:13,880 --> 00:27:17,439
Speaker 4: Well for my ability to sell their property for the

520
00:27:17,520 --> 00:27:20,160
Speaker 4: highest amount of money in the shortest amount of time.

521
00:27:21,160 --> 00:27:25,560
Speaker 4: What is changing from my understanding, because this has yet

522
00:27:25,600 --> 00:27:29,719
Speaker 4: to go into a fact, is how do buyers brokers

523
00:27:29,840 --> 00:27:30,920
Speaker 4: know what they're going to make.

524
00:27:47,520 --> 00:27:51,040
Speaker 2: When we talked about high end real estate before on

525
00:27:51,080 --> 00:27:54,199
Speaker 2: the podcast, one of the things that came up is

526
00:27:54,240 --> 00:27:58,640
Speaker 2: the sort of importance of big events like our Basil

527
00:27:59,000 --> 00:28:01,680
Speaker 2: is a big event, and maybe even if you don't

528
00:28:01,720 --> 00:28:04,400
Speaker 2: care about art, you know that a lot of rich

529
00:28:04,440 --> 00:28:06,679
Speaker 2: people are going to be there, and they're going to

530
00:28:06,720 --> 00:28:09,080
Speaker 2: be in Miami. And I don't know is there an

531
00:28:09,160 --> 00:28:11,280
Speaker 2: F one race in Miami? I assume there is?

532
00:28:11,280 --> 00:28:14,960
Speaker 4: Is there? Yes? In May? It's Art Basil's the kickoff

533
00:28:14,960 --> 00:28:17,800
Speaker 4: of the season in the first week of December, and

534
00:28:17,840 --> 00:28:20,160
Speaker 4: the Formula one race is kind of the tail end

535
00:28:20,160 --> 00:28:21,040
Speaker 4: of the season in May.

536
00:28:21,200 --> 00:28:23,080
Speaker 2: What happens at those events.

537
00:28:24,200 --> 00:28:27,560
Speaker 4: Well, Art Basil, in my opinion, has gotten a bit saturated.

538
00:28:27,800 --> 00:28:30,400
Speaker 4: It's you know, twenty years or so now in Miami.

539
00:28:30,560 --> 00:28:33,240
Speaker 4: So for someone like me who's a local it's still

540
00:28:33,640 --> 00:28:36,159
Speaker 4: an exciting time of year because the amount of people

541
00:28:36,200 --> 00:28:38,440
Speaker 4: and the quality of people that are coming down. But

542
00:28:38,920 --> 00:28:40,960
Speaker 4: I'm able to now say, oh, it's not what it

543
00:28:41,120 --> 00:28:44,520
Speaker 4: was five years ago. You know, Formula one because it's

544
00:28:44,560 --> 00:28:48,200
Speaker 4: a new event, is super exciting. The events I would

545
00:28:48,240 --> 00:28:51,360
Speaker 4: say are even more high class than those for Art Basil,

546
00:28:51,480 --> 00:28:54,280
Speaker 4: and the caliber of buyer that's coming in during a

547
00:28:54,320 --> 00:28:57,320
Speaker 4: traditional month that's already kind of over for the season

548
00:28:57,800 --> 00:29:01,160
Speaker 4: has extended the Miami season good thirty days.

549
00:29:01,560 --> 00:29:03,800
Speaker 2: But can you give us a more color what happens

550
00:29:03,840 --> 00:29:06,240
Speaker 2: at these events? I mean, it's obviously for F one,

551
00:29:06,760 --> 00:29:11,360
Speaker 2: it's now just sitting in the stand watching fast cars.

552
00:29:11,520 --> 00:29:13,480
Speaker 2: Though I guess that might be.

553
00:29:13,160 --> 00:29:14,040
Speaker 4: That's the worst part.

554
00:29:14,160 --> 00:29:16,520
Speaker 2: Yeah, I imagine that's the probably the most boring part. Talk

555
00:29:16,560 --> 00:29:19,960
Speaker 2: to us about what's really happening when the ultra wealthy

556
00:29:20,480 --> 00:29:23,120
Speaker 2: come down to Miami for an F one event.

557
00:29:24,280 --> 00:29:26,920
Speaker 4: So this past F one, which was just about sixty

558
00:29:27,040 --> 00:29:29,720
Speaker 4: days ago, there was a pop up ten from American

559
00:29:29,760 --> 00:29:33,560
Speaker 4: Express and Major Food Group and the event is called

560
00:29:33,680 --> 00:29:34,440
Speaker 4: Carbone Beach.

561
00:29:34,800 --> 00:29:37,560
Speaker 2: So every oh, I remember that, that's yeah Carbone right

562
00:29:37,560 --> 00:29:40,160
Speaker 2: with THEATONI, Yeah, exactly.

563
00:29:41,240 --> 00:29:44,400
Speaker 4: So they serve the spicy Rigatoni at like midnight every night,

564
00:29:44,400 --> 00:29:47,480
Speaker 4: there's a different musical act. You're looking around the room

565
00:29:47,520 --> 00:29:50,160
Speaker 4: and there's Elon Musk, and there's a bunch of basketball players,

566
00:29:50,200 --> 00:29:52,280
Speaker 4: and there's Jeff Bezos. Oh, there's a bunch of sports

567
00:29:52,280 --> 00:29:55,480
Speaker 4: illustrated models. It's just such a hot crowd and the

568
00:29:55,520 --> 00:29:57,600
Speaker 4: setup is cool, right, because there's no other time of

569
00:29:57,680 --> 00:29:59,560
Speaker 4: year that you can go to pop up event on

570
00:29:59,640 --> 00:30:03,400
Speaker 4: the beach and mingle with billionaires while listening to fun music.

571
00:30:03,760 --> 00:30:06,320
Speaker 2: I assume I would not be able to get into

572
00:30:06,360 --> 00:30:09,959
Speaker 2: the midnight Riggatoni serving at the Carbone Tent sponsored by

573
00:30:10,000 --> 00:30:13,720
Speaker 2: American Express. What does it take to get into that room?

574
00:30:14,000 --> 00:30:16,520
Speaker 4: You know, I don't think it's as hard as you

575
00:30:16,640 --> 00:30:20,920
Speaker 4: might make it sound, because everyone has to buy its table, right,

576
00:30:21,040 --> 00:30:23,280
Speaker 4: So for example, how was I invited? Right? There was

577
00:30:23,320 --> 00:30:25,840
Speaker 4: a table, there were twelve seats. Someone had two extra seats.

578
00:30:25,880 --> 00:30:28,520
Speaker 4: They don't want to have it an empty table. Boom,

579
00:30:28,560 --> 00:30:29,320
Speaker 4: I got in the door.

580
00:30:30,360 --> 00:30:33,600
Speaker 3: Okay, a buzz related question here. But one of the

581
00:30:33,640 --> 00:30:35,640
Speaker 3: other things that seems to happen a lot with the

582
00:30:35,840 --> 00:30:40,000
Speaker 3: ultra luxury end of the real estate market is you

583
00:30:40,040 --> 00:30:43,800
Speaker 3: see a lot of videos on TikTok and other social

584
00:30:43,840 --> 00:30:47,240
Speaker 3: media platforms and full disclosure. I was going through your

585
00:30:47,240 --> 00:30:50,000
Speaker 3: Instagram and I was looking at a lot they love it. Yeah,

586
00:30:50,040 --> 00:30:54,760
Speaker 3: well it definitely made me feel like I'm poor, Yeah,

587
00:30:54,800 --> 00:30:59,800
Speaker 3: pretty much. But like, why post videos on social media

588
00:31:00,280 --> 00:31:04,880
Speaker 3: of these houses? Because I assume really really wealthy people

589
00:31:04,920 --> 00:31:08,360
Speaker 3: are not necessarily finding property through social media. But is

590
00:31:08,400 --> 00:31:12,680
Speaker 3: it about creating that buzz or generating business? What's the

591
00:31:12,800 --> 00:31:13,480
Speaker 3: value there?

592
00:31:14,360 --> 00:31:17,280
Speaker 4: So that actually ties into an earlier question that maybe

593
00:31:17,280 --> 00:31:20,520
Speaker 4: I didn't fully answer. But my Instagram is the most

594
00:31:20,560 --> 00:31:25,000
Speaker 4: powerful tool for my business other than word of mouth referrals.

595
00:31:25,240 --> 00:31:28,960
Speaker 4: You would be surprised to see how many people that

596
00:31:29,080 --> 00:31:32,000
Speaker 4: you would think or not on social media are and

597
00:31:32,080 --> 00:31:34,800
Speaker 4: I can see them watching my stories to reaffirm that.

598
00:31:35,080 --> 00:31:38,160
Speaker 4: So social media is just like it is for many businesses.

599
00:31:38,240 --> 00:31:41,160
Speaker 4: It's an incredible tool. I've sold over two hundred million

600
00:31:41,280 --> 00:31:44,240
Speaker 4: in real estate that I can trap from my Instagram.

601
00:31:44,520 --> 00:31:47,440
Speaker 4: And soon we're going to be launching my TikTok accounts

602
00:31:47,520 --> 00:31:50,719
Speaker 4: which will be called step inside with Me, my nationally

603
00:31:50,760 --> 00:31:54,320
Speaker 4: trademarked segment, and I'll be linking my Golden Dina Instagram

604
00:31:54,360 --> 00:31:56,400
Speaker 4: to my step inside of Me on TikTok and just

605
00:31:56,800 --> 00:31:57,840
Speaker 4: taking over the world.

606
00:32:00,120 --> 00:32:03,880
Speaker 3: I like the ambition. So on Instagram, do people like

607
00:32:04,240 --> 00:32:06,719
Speaker 3: DM you after they see a video and they say, Hey,

608
00:32:06,800 --> 00:32:09,520
Speaker 3: I'm interested in this property. Can we arrange like a tour?

609
00:32:09,760 --> 00:32:12,880
Speaker 4: Yes? Yes, they do that. Which if you told me

610
00:32:12,920 --> 00:32:15,720
Speaker 4: that five years ago, when I started getting really serious

611
00:32:15,720 --> 00:32:19,560
Speaker 4: about putting time and money into digital content, I don't

612
00:32:19,560 --> 00:32:20,680
Speaker 4: think I would have believed you.

613
00:32:22,000 --> 00:32:25,000
Speaker 2: What happens at Art Basil you mentioned, Yeah, maybe it's

614
00:32:25,000 --> 00:32:27,640
Speaker 2: a little old, but it's still huge and some of

615
00:32:27,680 --> 00:32:33,719
Speaker 2: the Miami locals I know complain about the the traffic. Yeah, exactly.

616
00:32:34,240 --> 00:32:37,560
Speaker 2: So you mentioned the Carbone tent at American Express. What's

617
00:32:37,600 --> 00:32:40,600
Speaker 2: the vibe with Art Basil and what does a wealthy

618
00:32:40,640 --> 00:32:42,800
Speaker 2: person actually do when they go down there.

619
00:32:43,840 --> 00:32:46,240
Speaker 4: They're just feeling like a chicken with their head cut

620
00:32:46,280 --> 00:32:48,800
Speaker 4: off because there's so many events they're on the hour,

621
00:32:48,840 --> 00:32:52,600
Speaker 4: it's impossible to make it to everything. It just feels saturated.

622
00:32:53,000 --> 00:32:55,720
Speaker 4: So that's why I was saying that the formula one.

623
00:32:55,840 --> 00:32:58,600
Speaker 4: You know, like every night there's one or two specific

624
00:32:58,640 --> 00:33:01,600
Speaker 4: events that everyone wants to and it's clear like you're

625
00:33:01,640 --> 00:33:04,400
Speaker 4: it if you're at one of those parties. Are baseling

626
00:33:04,440 --> 00:33:06,760
Speaker 4: you know, the art is still amazing, right, but how

627
00:33:06,760 --> 00:33:08,760
Speaker 4: many times are you going to go see the show?

628
00:33:09,520 --> 00:33:09,720
Speaker 4: You know?

629
00:33:09,920 --> 00:33:11,880
Speaker 2: So we met, We brought this up at the beginning,

630
00:33:12,200 --> 00:33:16,400
Speaker 2: but this other element of one upmanship and maybe people

631
00:33:16,520 --> 00:33:20,520
Speaker 2: want to buy a property in part because it's more

632
00:33:20,560 --> 00:33:23,960
Speaker 2: expensive and because it's more expensive than what the last

633
00:33:23,960 --> 00:33:26,120
Speaker 2: guy paid and you can have some record or bragging

634
00:33:26,200 --> 00:33:28,840
Speaker 2: rights or something like that. Do you see that playing

635
00:33:28,880 --> 00:33:30,200
Speaker 2: out among buyers?

636
00:33:31,240 --> 00:33:33,440
Speaker 4: Not so much about buyers, because who wants to brag

637
00:33:33,600 --> 00:33:36,880
Speaker 4: that they overpaid or that the last buyer paid twenty

638
00:33:36,920 --> 00:33:40,320
Speaker 4: and now they're paying forty, But definitely amongst sellers.

639
00:33:41,160 --> 00:33:44,000
Speaker 3: I have a slightly personal question, which is, you know,

640
00:33:44,080 --> 00:33:48,720
Speaker 3: here in New York there's been discussion about gentrification for

641
00:33:48,880 --> 00:33:51,320
Speaker 3: as long as I can remember, and the idea of

642
00:33:51,520 --> 00:33:54,720
Speaker 3: people being priced out of a particular market, and in

643
00:33:54,800 --> 00:33:58,480
Speaker 3: recent years you've started to see those headlines in Miami

644
00:33:58,560 --> 00:34:01,760
Speaker 3: as well, the idea that there's affordable housing, people are

645
00:34:01,800 --> 00:34:05,600
Speaker 3: having to move out of South Florida entirely. How do

646
00:34:05,640 --> 00:34:10,080
Speaker 3: you feel about that aspect of the luxury market. Is

647
00:34:10,120 --> 00:34:11,920
Speaker 3: that something that you think about at all?

648
00:34:12,800 --> 00:34:14,839
Speaker 4: I think about it a little bit because I own

649
00:34:14,880 --> 00:34:18,400
Speaker 4: rental properties and from that point of view as a landlord.

650
00:34:18,800 --> 00:34:20,760
Speaker 4: You know, I used to rent the condo for twenty

651
00:34:20,760 --> 00:34:23,000
Speaker 4: three hundred, Now I get twenty five hundred for it.

652
00:34:23,320 --> 00:34:25,239
Speaker 4: I've had a long term tenant in one of my

653
00:34:25,640 --> 00:34:28,120
Speaker 4: properties that I could probably run for ten thousand a month,

654
00:34:28,160 --> 00:34:30,560
Speaker 4: but I keep it at six thousand because he's a

655
00:34:30,600 --> 00:34:34,600
Speaker 4: good tenant, Right So, I think there's more to the

656
00:34:34,640 --> 00:34:38,400
Speaker 4: story than just what the media portrays, especially in the

657
00:34:38,400 --> 00:34:40,440
Speaker 4: town like South Beach. You know, South Beach is fueled

658
00:34:40,440 --> 00:34:43,239
Speaker 4: by so much tenancy from people who work in the

659
00:34:43,280 --> 00:34:47,080
Speaker 4: service industry. Right so there's still, in my opinion, there's

660
00:34:47,120 --> 00:34:50,799
Speaker 4: still a good chunk of affordable housing. But when I

661
00:34:50,840 --> 00:34:54,439
Speaker 4: think about my business, which is mostly ten million and up,

662
00:34:54,760 --> 00:34:57,040
Speaker 4: I'm proud of the fact that I'm raising values for

663
00:34:57,160 --> 00:35:00,640
Speaker 4: homeowners in these communities who took a chance on certain

664
00:35:00,640 --> 00:35:02,839
Speaker 4: neighborhoods when they just weren't on the map.

665
00:35:03,480 --> 00:35:06,480
Speaker 2: You mentioned though, the service workers, and this comes up

666
00:35:06,719 --> 00:35:10,799
Speaker 2: a lot in high end areas, which is that if

667
00:35:10,840 --> 00:35:15,799
Speaker 2: you're a restaurateur, or if you're a school, or if

668
00:35:15,840 --> 00:35:18,879
Speaker 2: you're the fire department, et cetera, that your own employees

669
00:35:18,960 --> 00:35:21,960
Speaker 2: have a really difficult time, or if even if you're

670
00:35:22,040 --> 00:35:24,839
Speaker 2: like a golf club and your golf instructors, et cetera,

671
00:35:24,920 --> 00:35:28,839
Speaker 2: that your own employees have a difficult time living in

672
00:35:28,960 --> 00:35:31,960
Speaker 2: proximity to where they work. What are you seeing within

673
00:35:32,280 --> 00:35:37,279
Speaker 2: intra Miami migration patterns like where is the you know,

674
00:35:37,360 --> 00:35:40,919
Speaker 2: the bartender who works at some hot club in South Beach,

675
00:35:41,360 --> 00:35:44,839
Speaker 2: where are they living? Or how do businesses make sure

676
00:35:44,880 --> 00:35:46,680
Speaker 2: that their employees have places to live?

677
00:35:47,600 --> 00:35:50,000
Speaker 4: Well, if you're a bartender and a hot club, you're

678
00:35:50,040 --> 00:35:52,480
Speaker 4: probably living in close proximity to your work. And what

679
00:35:52,560 --> 00:35:55,000
Speaker 4: we call the Art Deco district of South Beach, where

680
00:35:55,040 --> 00:35:58,440
Speaker 4: the apartments are small, they're five to seven hundred square feet,

681
00:35:58,480 --> 00:36:01,600
Speaker 4: you could still runt something for two thousand bucks a month,

682
00:36:01,640 --> 00:36:04,160
Speaker 4: though it might not have parking, and it never had parking,

683
00:36:04,239 --> 00:36:07,480
Speaker 4: so that's nothing new. But when I think about other markets,

684
00:36:07,520 --> 00:36:09,960
Speaker 4: like my family and I were just vacationing in Aspen

685
00:36:10,600 --> 00:36:13,240
Speaker 4: and I was actually at the spot getting a massage,

686
00:36:13,239 --> 00:36:15,160
Speaker 4: and I was chatting with the masseuse and she's telling

687
00:36:15,160 --> 00:36:17,760
Speaker 4: me that she lives in Aspen Town, and it sounded

688
00:36:17,840 --> 00:36:21,960
Speaker 4: like the most incredible stroke of luck that she's able

689
00:36:22,000 --> 00:36:24,640
Speaker 4: to live in Aspen as opposed to thirty minutes away,

690
00:36:24,920 --> 00:36:27,640
Speaker 4: and I don't think Miami Beach is anywhere near that level.

691
00:36:27,680 --> 00:36:30,000
Speaker 4: You know, when I think of prices in markets like Aspen,

692
00:36:30,040 --> 00:36:32,080
Speaker 4: Miami Beach actually looks affordable.

693
00:36:33,600 --> 00:36:37,120
Speaker 3: What's the next big thing in luxury Miami real estate?

694
00:36:37,160 --> 00:36:38,000
Speaker 3: What's on your radar?

695
00:36:39,080 --> 00:36:41,720
Speaker 4: We're going to see sales for over one hundred million

696
00:36:41,880 --> 00:36:45,000
Speaker 4: become more and more common with not just one or

697
00:36:45,040 --> 00:36:48,960
Speaker 4: two buyers as the only source for those properties. Typically

698
00:36:49,000 --> 00:36:51,120
Speaker 4: when there's been a very high price point sale, it

699
00:36:51,160 --> 00:36:54,879
Speaker 4: has always been one of two buyers, right the obvious names. Now,

700
00:36:54,960 --> 00:36:58,200
Speaker 4: because the amount of wealth moving into this marketplace, I

701
00:36:58,239 --> 00:37:01,520
Speaker 4: believe we're going to see more transactions like that because

702
00:37:01,520 --> 00:37:05,440
Speaker 4: traditionally those sales have always been in Manhattan or California.

703
00:37:05,840 --> 00:37:08,640
Speaker 4: So Miami's going to join the ranks of one hundred

704
00:37:08,719 --> 00:37:10,200
Speaker 4: million plus sales on the ring.

705
00:37:10,920 --> 00:37:12,920
Speaker 2: In the beginning, And I don't know if you've done

706
00:37:13,040 --> 00:37:15,799
Speaker 2: any of these buildings, but in the beginning, Tracy and

707
00:37:15,800 --> 00:37:19,720
Speaker 2: I were talking about the rise of these branded condo

708
00:37:19,960 --> 00:37:20,880
Speaker 2: buildings and.

709
00:37:20,920 --> 00:37:23,600
Speaker 4: Yes, I was chuckling, Yeah, hilarious.

710
00:37:23,200 --> 00:37:25,799
Speaker 2: Tower or the Martin Teal. First of all, have you

711
00:37:25,800 --> 00:37:27,719
Speaker 2: sold any units from any of those buildings?

712
00:37:28,960 --> 00:37:31,640
Speaker 4: No, that's not what I specialize in. I really sell

713
00:37:31,680 --> 00:37:34,239
Speaker 4: when I do work in a condo building, it's boutique

714
00:37:34,760 --> 00:37:36,080
Speaker 4: and it tends to be on the water.

715
00:37:36,800 --> 00:37:39,799
Speaker 2: Do you have a sense for setting aside whether you

716
00:37:39,920 --> 00:37:43,000
Speaker 2: sell them, do you have a sense for why this

717
00:37:43,120 --> 00:37:46,360
Speaker 2: market exists? What from the buyer perspective, what it is

718
00:37:46,400 --> 00:37:48,759
Speaker 2: about those buildings that appeals to them.

719
00:37:49,320 --> 00:37:53,120
Speaker 4: I believe those buildings are really driven by the international buyer.

720
00:37:53,160 --> 00:37:57,040
Speaker 4: I'm hearing about the purchasers who bought an Aston Martin

721
00:37:57,320 --> 00:38:00,080
Speaker 4: and who are buying in the Mercedes Benz Tower, And

722
00:38:00,120 --> 00:38:03,320
Speaker 4: it is shocking to me that this demographic exists because

723
00:38:03,360 --> 00:38:05,200
Speaker 4: where I work, which is really you know, more of

724
00:38:05,239 --> 00:38:09,520
Speaker 4: the residential resale marketplace, we don't see those type of buyers.

725
00:38:10,520 --> 00:38:13,200
Speaker 3: You just reminded me this is something that I meant

726
00:38:13,200 --> 00:38:15,480
Speaker 3: to ask you. But who do you consider or what

727
00:38:15,520 --> 00:38:21,040
Speaker 3: do you consider competition for luxury property in Miami. Is

728
00:38:21,080 --> 00:38:25,960
Speaker 3: it that you're competing against, you know, potential listings in

729
00:38:26,080 --> 00:38:29,920
Speaker 3: a place like d Buy or San Francisco, Or is

730
00:38:29,960 --> 00:38:33,839
Speaker 3: it that you're competing against other real estate brokers? Like who,

731
00:38:34,120 --> 00:38:36,680
Speaker 3: who or what are you competing against in this space?

732
00:38:37,160 --> 00:38:40,040
Speaker 4: Sure? I mean there's a lot of competition in every department,

733
00:38:40,280 --> 00:38:43,040
Speaker 4: but usually if I'm competing with another marketplace, it will

734
00:38:43,080 --> 00:38:45,759
Speaker 4: be Palm Beach. Oftentimes you'll have a buyer say we're

735
00:38:45,800 --> 00:38:49,080
Speaker 4: deciding between Miami and Palm Beach. Very rarely is it

736
00:38:49,239 --> 00:38:52,480
Speaker 4: between you know, another country. And then as far as

737
00:38:52,560 --> 00:38:56,000
Speaker 4: other brokers, naturally, you know, that is just such a

738
00:38:56,160 --> 00:38:59,279
Speaker 4: part of the business. You know, everybody wants the best listings.

739
00:38:59,600 --> 00:39:00,960
Speaker 4: It's a competitive space.

740
00:39:01,200 --> 00:39:04,640
Speaker 2: When you mentioned international buyers, where do you see them

741
00:39:04,680 --> 00:39:05,120
Speaker 2: coming from?

742
00:39:05,120 --> 00:39:09,320
Speaker 4: Mostly, well, in the towers that you mentioned, it's usually

743
00:39:09,360 --> 00:39:12,640
Speaker 4: a Latin American buyer, But lately I've been hearing about

744
00:39:12,640 --> 00:39:16,440
Speaker 4: an Asian demographic like the Japanese that have entered the marketplace,

745
00:39:16,480 --> 00:39:18,239
Speaker 4: which is really news.

746
00:39:18,920 --> 00:39:21,280
Speaker 2: So you have a buyer and they're saying, I'm thinking

747
00:39:21,280 --> 00:39:24,520
Speaker 2: about Miami versus Palm Beach. What's your pitch for why

748
00:39:24,560 --> 00:39:25,840
Speaker 2: Miami over a Palm Beach.

749
00:39:27,440 --> 00:39:29,640
Speaker 4: I say something like, well, if you want to have

750
00:39:29,680 --> 00:39:32,000
Speaker 4: dinner at five point thirty every night, yeah you should do.

751
00:39:34,800 --> 00:39:35,440
Speaker 3: That's cutting.

752
00:39:35,880 --> 00:39:38,239
Speaker 2: Yeah, that's a good one. Dina, thank you so much

753
00:39:38,280 --> 00:39:40,239
Speaker 2: for coming on Outlass. That was really fun.

754
00:39:40,640 --> 00:39:42,759
Speaker 4: Thank you for having me. You guys are incredible and

755
00:39:42,800 --> 00:39:44,000
Speaker 4: I really appreciate this.

756
00:39:56,120 --> 00:39:58,600
Speaker 2: Tracy, do you want to live in a building that

757
00:39:58,640 --> 00:40:00,640
Speaker 2: has pickleball and paddle right in there?

758
00:40:02,080 --> 00:40:04,240
Speaker 3: I don't even know what to say. No, to be honest,

759
00:40:04,239 --> 00:40:04,640
Speaker 3: would you?

760
00:40:04,960 --> 00:40:07,480
Speaker 2: Well, no, I'd want a tennis court, which I'm sure

761
00:40:07,520 --> 00:40:08,120
Speaker 2: some of them have.

762
00:40:09,120 --> 00:40:11,040
Speaker 3: Since when have you gotten into tennis? We were talking

763
00:40:11,040 --> 00:40:13,520
Speaker 3: about this other day. This seems very off brand for you.

764
00:40:13,920 --> 00:40:16,600
Speaker 2: Yeah. I used to play it like in middle school,

765
00:40:16,600 --> 00:40:18,480
Speaker 2: in a little bit in high school, and like, I

766
00:40:18,480 --> 00:40:20,440
Speaker 2: don't know, it's a good sport. I feel like I

767
00:40:20,480 --> 00:40:23,000
Speaker 2: need to play some sport. But anyway, I really that

768
00:40:23,120 --> 00:40:27,880
Speaker 2: was a fun conversation to me. I particularly interested in

769
00:40:27,960 --> 00:40:32,600
Speaker 2: the midnight Carbone RIGATONI, where you can see Elon Musk

770
00:40:32,640 --> 00:40:36,360
Speaker 2: and Jeff Bezos and all those other types hangout.

771
00:40:36,239 --> 00:40:39,960
Speaker 3: Carbone with the BRIGATONI should be a new Beyonce single. Yeah,

772
00:40:39,920 --> 00:40:41,440
Speaker 3: I just think that'd be great. You know what, I

773
00:40:41,480 --> 00:40:46,040
Speaker 3: had a massive realization while we were recording that episode

774
00:40:46,080 --> 00:40:49,960
Speaker 3: because I was thinking about my perception of Miami. I

775
00:40:49,960 --> 00:40:53,759
Speaker 3: haven't been there since well in like decades now, but

776
00:40:54,760 --> 00:40:57,640
Speaker 3: my conception of the Miami property market is always the

777
00:40:57,680 --> 00:41:00,800
Speaker 3: sort of single family home from Golden Girls.

778
00:41:00,960 --> 00:41:02,719
Speaker 2: Oh do you remember that there.

779
00:41:02,600 --> 00:41:05,440
Speaker 3: Well, and then I just realized when I was looking

780
00:41:05,440 --> 00:41:07,480
Speaker 3: it up because I was trying to see what neighborhood

781
00:41:07,480 --> 00:41:09,440
Speaker 3: it was in, it actually was never in Miami.

782
00:41:09,520 --> 00:41:09,840
Speaker 4: It was in.

783
00:41:10,280 --> 00:41:11,680
Speaker 3: Hollywood, in Los Angeles.

784
00:41:11,719 --> 00:41:12,799
Speaker 2: So oh, there you go.

785
00:41:12,840 --> 00:41:13,440
Speaker 4: There goes that.

786
00:41:13,560 --> 00:41:17,439
Speaker 3: My yeah, inaccurate perception of Miami housing.

787
00:41:17,360 --> 00:41:20,800
Speaker 2: Was blown up. Okay, here's another question. In your house

788
00:41:20,840 --> 00:41:23,800
Speaker 2: in Connecticut, do you have a good wall for projecting

789
00:41:23,840 --> 00:41:27,320
Speaker 2: your NFT? No?

790
00:41:27,320 --> 00:41:30,440
Speaker 3: No, The answer to multiple parts of that question is

791
00:41:30,480 --> 00:41:33,720
Speaker 3: no joke. So not only am I lacking in wall space,

792
00:41:34,120 --> 00:41:37,560
Speaker 3: but I also have no NFTs to put on them.

793
00:41:37,880 --> 00:41:40,839
Speaker 3: The other thing I will say about that conversation, and

794
00:41:41,239 --> 00:41:43,480
Speaker 3: we talked about this a little bit with hit ten,

795
00:41:43,719 --> 00:41:48,239
Speaker 3: but you really do get the sense that a billionaire

796
00:41:48,719 --> 00:41:52,279
Speaker 3: with a vision or a plan can come into a

797
00:41:52,400 --> 00:41:57,799
Speaker 3: market and spark momentum in terms of property prices, and

798
00:41:57,840 --> 00:42:01,319
Speaker 3: then capitalize on that momentum. Right, you come in, you

799
00:42:01,360 --> 00:42:04,240
Speaker 3: buy a bunch of houses when you know they're not cheap,

800
00:42:04,280 --> 00:42:06,640
Speaker 3: but they're cheaper than they are now, and then you

801
00:42:06,800 --> 00:42:11,160
Speaker 3: invest in culture, maybe you invest in some social services.

802
00:42:11,520 --> 00:42:12,200
Speaker 4: You create the.

803
00:42:12,120 --> 00:42:16,120
Speaker 3: Buzz, you get other millionaires and billionaires coming into the market,

804
00:42:16,320 --> 00:42:18,440
Speaker 3: and then prices go up and then you get to

805
00:42:18,480 --> 00:42:20,200
Speaker 3: monetize that right totally.

806
00:42:20,960 --> 00:42:25,040
Speaker 2: It really is fascinating. And there was a story recently

807
00:42:25,960 --> 00:42:28,960
Speaker 2: about a group of like very rich people and I

808
00:42:29,000 --> 00:42:32,840
Speaker 2: think they were trying to convince Vanderbilt University to open

809
00:42:32,960 --> 00:42:35,799
Speaker 2: up a camp. I think it was Vanderbilt. Oh yeah, yeah,

810
00:42:35,880 --> 00:42:39,440
Speaker 2: Home Beach Elite are raising money to Lord Vandert. Vanderbilt

811
00:42:39,440 --> 00:42:42,200
Speaker 2: to Florida was the title in Insurance Journal. And no,

812
00:42:42,280 --> 00:42:46,080
Speaker 2: actually it's a Bloomberg story. But this basic idea that

813
00:42:46,520 --> 00:42:49,160
Speaker 2: you know, it's one thing for there to be hotspots

814
00:42:49,200 --> 00:42:51,640
Speaker 2: and clubs in Miami has that, but if you really

815
00:42:51,680 --> 00:42:54,360
Speaker 2: want to like attract families and stuff like that, you

816
00:42:54,400 --> 00:42:58,279
Speaker 2: need all these other amenities like schools and museums and

817
00:42:58,400 --> 00:43:00,440
Speaker 2: all that stuff. And so you actually they have to

818
00:43:00,520 --> 00:43:04,720
Speaker 2: like crowdfund in a way like a big university campus

819
00:43:04,760 --> 00:43:07,840
Speaker 2: because by and large, these are the types of things

820
00:43:07,840 --> 00:43:10,319
Speaker 2: that up until recently, there just wasn't much of in

821
00:43:10,320 --> 00:43:10,760
Speaker 2: the area.

822
00:43:11,080 --> 00:43:14,480
Speaker 3: Yeah, and I do wonder you know, often I think

823
00:43:14,520 --> 00:43:17,440
Speaker 3: people talk about the labor shortage, and it's actually a

824
00:43:17,480 --> 00:43:20,879
Speaker 3: housing issue, right. It's that people can't afford to live

825
00:43:21,000 --> 00:43:24,640
Speaker 3: close to places where there are jobs. And I take

826
00:43:24,680 --> 00:43:28,480
Speaker 3: Dina's point about Miami is nowhere near as bad as

827
00:43:28,560 --> 00:43:32,120
Speaker 3: someplace like Aspen or maybe Jackson Hole, which both you

828
00:43:32,200 --> 00:43:36,120
Speaker 3: and I have been there. We've experienced talking to you know,

829
00:43:36,280 --> 00:43:39,960
Speaker 3: servers and drivers that are working in Jackson Hole, but

830
00:43:40,040 --> 00:43:43,399
Speaker 3: they live like an hour away because that's the only

831
00:43:43,440 --> 00:43:45,520
Speaker 3: place they can afford and they have to do a

832
00:43:45,640 --> 00:43:47,960
Speaker 3: drive that's kind of dangerous to get to their jobs

833
00:43:48,040 --> 00:43:52,279
Speaker 3: every day. So I do wonder like when that dynamic

834
00:43:52,400 --> 00:43:55,200
Speaker 3: becomes more problematic for a place like Miami.

835
00:43:55,440 --> 00:43:57,480
Speaker 2: Yeah, Now, you know, it's probably one of those things

836
00:43:57,480 --> 00:44:00,520
Speaker 2: where there's still enough density and stuff away from the

837
00:44:00,600 --> 00:44:03,520
Speaker 2: water that there's still probably you know, it sounds like

838
00:44:03,560 --> 00:44:07,440
Speaker 2: there's still some areas with normal size and maybe relatively

839
00:44:07,680 --> 00:44:10,920
Speaker 2: normal price locations, but it does seem like it's getting

840
00:44:10,960 --> 00:44:12,200
Speaker 2: to be a worsening challenge.

841
00:44:12,280 --> 00:44:12,840
Speaker 4: Yeah.

842
00:44:12,880 --> 00:44:14,480
Speaker 3: Well, I think we should do more on this though,

843
00:44:14,520 --> 00:44:17,600
Speaker 3: because it is a fascinating aspect of the real estate

844
00:44:17,640 --> 00:44:20,920
Speaker 3: market that seems to be relatively new. Also, what was

845
00:44:20,960 --> 00:44:24,640
Speaker 3: Dina saying, the one hundred million dollar sales in Miami.

846
00:44:24,360 --> 00:44:26,200
Speaker 2: Yeah, she expects them to keep going up.

847
00:44:26,320 --> 00:44:30,359
Speaker 3: Yeah, which again is a big difference to how the

848
00:44:30,440 --> 00:44:33,320
Speaker 3: luxury market used to operate where those types of sales

849
00:44:33,360 --> 00:44:36,319
Speaker 3: would be either in California or in New York, like

850
00:44:36,400 --> 00:44:38,919
Speaker 3: those were the only places in the States at least

851
00:44:38,920 --> 00:44:41,640
Speaker 3: where you would see that. It's interesting to see Miami

852
00:44:41,760 --> 00:44:45,560
Speaker 3: potentially pick up that kind of business totally. All right, well,

853
00:44:45,600 --> 00:44:46,319
Speaker 3: shall we leave it there.

854
00:44:46,400 --> 00:44:47,120
Speaker 2: Let's leave it there.

855
00:44:47,239 --> 00:44:50,080
Speaker 3: This has been another episode of the Odd Thoughts podcast.

856
00:44:50,200 --> 00:44:53,520
Speaker 3: I'm Tracy Alloway. You can follow me at Tracy Alloway.

857
00:44:53,160 --> 00:44:55,920
Speaker 2: And I'm Jill Wisenthal. You can follow me at the Stalwart,

858
00:44:56,320 --> 00:44:59,839
Speaker 2: follow Dina Golden tayor on Instagram. She's at Golden Dina

859
00:44:59,880 --> 00:45:02,560
Speaker 2: in and you can look at all of those properties

860
00:45:02,600 --> 00:45:05,479
Speaker 2: and maybe DM her and buy one yourself if you're

861
00:45:05,840 --> 00:45:08,919
Speaker 2: so inclined, or to what Tracy does of just look

862
00:45:08,960 --> 00:45:11,880
Speaker 2: at properties and discussed at the types of places that

863
00:45:11,960 --> 00:45:15,600
Speaker 2: you would never dream of living in. Follow our producers

864
00:45:15,640 --> 00:45:19,160
Speaker 2: Carmen Rodriguez at Carman Arman dash Ol Bennett at Dashbot

865
00:45:19,160 --> 00:45:23,160
Speaker 2: and Kelbrooks at Kelbrooks. Thank you to our producer Moses Ondam.

866
00:45:23,440 --> 00:45:26,920
Speaker 2: For more Oddlots content, go to bloomberg dot com slash Odlots,

867
00:45:26,920 --> 00:45:30,040
Speaker 2: where you have transcripts, a blog and a newsletter and

868
00:45:30,200 --> 00:45:32,640
Speaker 2: you can chat about all of these topics, including real

869
00:45:32,719 --> 00:45:36,720
Speaker 2: estate in the discord, Discord, dot gg, slash odlines.

870
00:45:36,520 --> 00:45:39,080
Speaker 3: Okay, and if you enjoy Oddlots, if you like it

871
00:45:39,120 --> 00:45:42,400
Speaker 3: when I am a complete snob about modern architecture, then

872
00:45:42,440 --> 00:45:45,920
Speaker 3: please leave us a positive review on your favorite podcast platform.

873
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Speaker 3: And remember, if you are a Bloomberg subscriber, you can

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Speaker 3: listen to all of our episodes absolutely ad free. All

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Speaker 3: you need to do is connect your Bloomberg account with

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Speaker 3: Apple Podcasts. In order to do that, just find the

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Speaker 3: Bloomberg channel on the platform and follow the instructions there.

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Speaker 3: Thanks for listening.