Rebuilding Louisiana... - Posted by Chris in FL

Posted by Adrian on April 11, 2006 at 22:19:05:

if you guys plan on going down there again, let me know I would be
interested in doing some rehabs there as well. My question is how long
do we have to sit on it before we can sell it? Another is why not
rebuild/rehab put out as rentals to people with no housing or little
cash, and rake in on tax benefits.

Rebuilding Louisiana… - Posted by Chris in FL

Posted by Chris in FL on April 07, 2006 at 07:43:49:

I am flying, together with some other investors, to Louisiana next week to look at rehabbing opportunities. I know some people on the ground there now there are going to show us around. However, major stumbling block: there hasn’t been enough rehabbing completed to start getting comparable sales. My understanding right now is that banks in the area are scared to commit to financing houses, after they have been rehabbed, because nobody knows what the values will be. Pre-hurricane sales help some, and we will review those, but does anyone out there have special knowledge of this kind of thing? Does anyone know what average appreciation in New Orleans has been for the past 5-10 years (we want to project forward some houses from time they were last sold to get a rough idea)? Any help here would be greatly appreciated.

Re: Rebuilding Louisiana… - Posted by Jim in MN

Posted by Jim in MN on April 07, 2006 at 11:22:04:

Hey Chris…There are tons of rehab opportunities…your biggest problem, however, has less to do with financing. How do you convince people to live in an area so encumbered with water, and with such a great chance to have a repeat performance. I just came back from doing the same thing you are looking at doing and the deals there are amazing…$200,000 houses for 25-50,000. The realtors I spoke with seemed to be very optimistic about the future sales but hesitant to commit to any numbers…I really want to purchase property or do some gut/rehab work there, but I found, and I think you’ll find that most of the people there won’t pay very much to have stuff done…and they aren’t planning to move back to many of the neighborhoods affected…I am very interested in getting something going down there,would you be interested in partnering up to get going perhaps???Let me know