South Florida’s real estate market has brought another investing trend in the guise of fractured condos. These are condominiums already built but only some units have been sold out. In the investor’s desire to get his money back swiftly, the unsold units are sold at huge discounts.

Hedge funds investors and other speculators are out shopping for these fractured condominiums at very high discounts beginning at 40%. Miami-based New Valley LLC said it has $250 million in ready cash in preparation for the purchase of Florida’s fractured condominiums. Acquisitions Vice President Vanessa Grout said developers who are in dire need have made possible once-in-a-lifetime opportunities for investors who are in the lookout for low-priced and well-located condos.

McCabe Research and Consulting’s Jack McCabe however said buying condo units by bulk can complicate matters for investors since buying 10 units of more from a single building can mean assuming some of the original developer’s legal liabilities. Under Florida laws, investors who purchase this many units in a single condominium can become a “developer in lieu” and can be embroiled in the middle of a legal problem left by the former developer.