Posted by Park on February 23, 2006 at 20:01:00:
Thanks for the response Bill.
There is an article in U.S. News and World Report, out just now, that
gives a bit of info on the recovery.
Thanks again, Park
Revisiting New Orleans… (long) - Posted by Park
Posted by Park on February 22, 2006 at 17:12:17:
…and the South damaged by Katrina.
On the way back from some business I had in the South a week ago, I had the
opportunity to drive through a few neighborhoods in Biloxi and New Orleans
destroyed by Katrina. It?s difficult not to be impressed by the sheer
displacement.
A week after I returned to California I called two RE agents in New Orleans to
get their view on reconstruction and investment.
Both pushed some areas in which they had RE interests. Both said many
displaced residents were restless to return. And both said that rental property
is rare, valuable, and needed desperately by those who still had jobs but no
place to live. The financial district of New Orleans seems to have had little
damage. It appears that it?s possible to choose from the highest of FICO
scoring tenants.
I don?t plan to invest in the post Katrina areas, but I am interested in
viewpoints of investors who’ve thought about it. It seems like a textbook
example of opportunity for investors.
The conundrum: Flooded areas are probably inexpensive and may be an
extremely profitable investment, but may become worthless again in the
event of another flood. The high-ground areas probably retained much of
their value.
I, and others, (I can only term us ‘tourists’) drove through the abandoned
neighborhoods and nodded to each other as we felt a little odd. In New
Orleans, in the lower 9th Ward, I stopped and talked to a homeowner. We
stood in the driveway of his gutted house as he told me that most wouldn’t
return; ?..mostly the older people wouldn’t.? He said that he figured at some
point someone would come to help. He thought that Christian groups would
at least come. I asked about his church, and he said they were mostly gone
too. No other groups stopped.
He showed me his pressure washer and bleach for the mold, and where FEMA
had spray painted some locating marks in his driveway where a smaller RV-
like FEMA trailer would go, but hadn’t arrived yet. Then standing in the
interior of the house with him, I said something about how good the studs
looked and that his place had good bones. All he said was, “Yeah.” He tried to
sound optimistic and determined. But he was obviously beat and very unsure
about tomorrow, or the wisdom in trying to rebuild.
I left and drove through another mile of dirt, wood piles, and destruction, and
then out of nowhere, someone had built a brand new fence! 6 feet tall and
150 ft. of new wood going up one side of the property and then squaring off
the back yard! I can?t tell you how uplifting it must be to a neighborhood to
see that. It was the simplest bit of new rough-cut fencing in a place that was
otherwise the patina of the Big Muddy. It was a ray of hope. I can imagine
people driving by and honking at the person building it. I could also see how
a building BOOM could result and gather momentum from similar acts.
On a side note: If anybody has the time on a weekend to go to one of those
neighborhoods and help a homeowner drag some stuff to the street, or help
gut their home, the act would be appreciated in multiples. It would be a good
thing to do even if they eventually fail.
Any thoughts? Are any investors considering investing there? It seems to me
that the profits could be fantastic. I wish I had deeper pockets and more
experience.
Park
Revisiting New Orleans… (long) - Posted by Bill H
Posted by Bill H on February 22, 2006 at 18:07:22:
I am in Gulfport, MS…was here for Katrina…have been here since.
Investments here:
-
In the State of MS the Governour signed a law on Oct 4th, 2005 which prevent foreclosure without chancery court action. In that court the owner can agree to make “A reasonable Payment” and that is what the lender has to accept…the foreclosure is stopped for two years. So if you are offered pre-foreclosure properties…be very careful in what you do.
-
FEMA–Flood Zone Guidelines…currently in limbo as to what you can and cannot build…it looks like they will require from 18-23 feet above sea level…this means that everything will be built up.
To give you an example the local VA Hospital sits 28 feet above sea level…it had five feet of water in it from Katrina.
It has taken me since Katrina just to get a roof on my house…prices for labor are almost astronomical…IF you can get it done…Have had 4 different work groups tell me they will be by tomorrow to do the work…the only problem is tht so far…tomorrow has not arrived…I like the 65,300 others am waiting along with the 68,700 damaged places.
So, IMHO…before I bought here…ANYTHING…I would be DARN sure what I could do with it.
Good Luck,
Bill H
Re: Revisiting New Orleans… (long) - Posted by Joe
Posted by Joe on February 22, 2006 at 17:45:01:
I’ve heard from people in the south east that contractors and laborers are harder and harder to schedule for work because they are being drained to the rebuilding in the south. Not sure how true this is, but if it is true at all, it could mean that people are out there working the real estate.
Re: Revisiting New Orleans.one more item… - Posted by Bill H
Posted by Bill H on February 22, 2006 at 20:53:51:
Some of the people down here, perhaps a lot of them, will be eligible for grants up to $150,000 to assist them. If they get the grant they sign a covenant that will run with the land stating that any rebuilding on their land will be in accordance with FEMA Guidelines.
Whatevr those guidelines turn out to be…SO again if you are going to buy down here…KNOW what you are getting into BEFORE you spend your $$$.
Good Luck,
Bill H