Trash or Treasure?

OK, so you know and understand that one man’s trash is another man’s treasure.  One man’s loss is another man’s gain.  This is very true with real estate. Especially during and after “crisis” type events.  Sub prime melt down!  Economic recession!  Geo-Political problems!  You also know timing is everything… or at least most of everything.

According to Chris Bounds, Director of Dos Mundos Developments, Inc, in Austin Texas, hurricanes are great opportunities for lots of things…especially real estate acquisitions.  No need to be silly or macobre or act like a merciless vulture, BUT, hurricane damaged areas do produce opportunities for real estate investing.  “Sure, go help with the clean up, donate to the area’s Red Cross and do a lot of praying for those adversely affected by a storm”, says Bounds, ” that’s just what we do.  But we also like opportunities. ”

Storms have a way of shortening the decision time would be sellers (pre storm)  take to finally agree to sell a property.  Also, storms will sometimes expose the weak or marginal owners who were just barely hanging on anyway and give them a way out.  Also, insurance payoffs and or the lack of coverage will also place properties on the market.  My favorites are “under-construction” projects that are in some stage of completion.  Often, lenders and or investors, will second guess the project and may be willing to make a deal.  Those without interim or construction insurance make the best targets.  Properties cut off from or in-accessible to consumers because of public infrastructure issues also create deals.   Overall, damaging hurricanes put more inventory on the market, in concentrated areas, than can be absorbed.  This naturally forces prices down and creates value for buyers.

So, be ready to move faster than normal and be ready to be patient.  It may take weeks to get electricity and water back and months or years to gain access down certain roads or across bridges, but the earth will keep spinning and consumers will return to the market…not to mention lots of federal, state and local funding will find its way into the damaged area. 

For more no nonsense real estate talk, contact Chris Bounds directly.