Confusing a Bull Market With Brains

These kind of stories are a dime a dozen now, but usually not on this scale...

A South Florida real estate broker Carlos Justo, flamboyant founder of Sol Sotheby's International Realty, is in deep money trouble. Justo, who catered to millionaires and became one himself, says: ``I am considering filing personal bankruptcy. I'm fighting for my financial life.''

He, along with some investors, lost $2.35 million in a deal at 3 Indian Creek Island, he says. He is in foreclosure on another property -- at 40 Indian Creek Island, where he now lives. He bought it in '05 for $6.85 million. The debt is around $11 million
with interest. (He's trying to sell the house -- for $14.9 million.)

Justo, 51, is fending off a battery of lawsuits, including one from agent Techrin Hijazi, who used to work for him. His net worth, which he says reached $20 million, has plummeted. He estimates it is now $2 million to $3 million.

''I should have really been in bankruptcy court a year ago,'' Justo says. His attorneys are trying to talk him out of it, but he gave them 60 days to ''settle everything'' or he's filing. ``It's a big mess.''

Complicating matters was the ugly split between Justo and Irving A. Padron, his former business partner and CEO. ''I settled with him,'' Justo says. ``I paid him $500,000. I owe him another $800,000. I have no intention of paying him what I owe him. I will see him in court.''

Justo invested in luxury waterfront properties, in addition to 40 Indian Creek -- 36 Indian Creek Island, and the former George Batchelor estate in the 2900 block of North Bay Road in Miami Beach. ''Between those assets alone, I have a debt of over $30 million,'' he says.

His timing was off, he admits. 'The market is slowing down. Everybody knows what's happening in the Miami market because of the condo oversupply. It's going to be a bloodbath out there. You know what the buyers are saying? `Let me wait, why should I pay $10 million for a house when it might be down to $8 million in a year.' ''

Or maybe $5 million?