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Updated almost 8 years ago, 02/09/2017
Tornado in New Orleans East yesterday
Yesterday I was in New Orleans East when the Tornado hit that area. Luckily, our house is fine. Some of our neighbors didn't have good luck like us. As a real estate investor, how can we help them and get some profit by our work? I want to do win-win deals with fix and flip. Is there any chance here?
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Well, "helping them" and "profiting but our work", generally are in conflict with each other. Be that as it may, be aware if the rebuild costs exceed generally something like 50% of value, you have to bring everything up to current code, which may include current floor elevations being higher, which would cost more than the end value.
Originally posted by @Grace Sunshine:
Yesterday I was in New Orleans East when the Tornado hit that area. Luckily, our house is fine. Some of our neighbors didn't have good luck like us. As a real estate investor, how can we help them and get some profit by our work? I want to do win-win deals with fix and flip. Is there any chance here?
It will be primarily construction at first. FEMA will come in and assess the damage and maybe do blue tarp. Then insurance will come.
The ones not insured will likely get a FEMA payment of 20-25k payout. After that you may be able to help them out by buying them out if they can't afford to rebuild. It's not ideal but it can help someone out of a bad situation. And maybe you can profit too. Just make sure it's not in a wetlands area. After the FEMA buyout there will be a grandfather clause no more. So due diligence is especially important here.
Best of luck.
Originally posted by @Wayne Brooks:
Well, "helping them" and "profiting but our work", generally are in conflict with each other. Be that as it may, be aware if the rebuild costs exceed generally something like 50% of value, you have to bring everything up to current code, which may include current floor elevations being higher, which would cost more than the end value.
@ Thank you for your comments. I didn't know the 50% rule.
@Mike Reynolds Thank you for the comments. What is blue tarp?
Originally posted by @Grace Sunshine:
@Mike Reynolds Thank you for the comments. What is blue tarp?
FEMA will have contractors come in and lay tarp on the roofs of the houses not damaged as much so they won't get worse. My company did some back during Katrina and Wilma in Florida. I guess they still do it these days. The FEMA payment info I got from hurricane Ike. I know lots of folks down that way and that's what they got. Lots of house down there at that time insurance would not cover them.
@Mike Reynolds Thank you very much for the explanation.
@Grace Sunshine I would suggest finding out IF Fema will be doing a payout and then contacting those people and see if they need to sell. It can be a win win if you get in early.
@Mike Reynolds Thanks for the useful information