All Forum Posts by: Braden Smith

 That is just the build cost and does not include the land cost. Construction costs are up over 40% in the last 4-5 years. 

I agree with the others who have commented. If you are struggling to make the numbers work, then it is likely not a deal to pursue.

Our biggest challenge in the New Orleans area is the cost of insurance. It is so high that it has become very difficult to find any property where it will have cash flow.

Have you gotten insurance quotes?

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Great summary! It was a good conversation. Lots of valuable info to take away! 

The best prices I have found lately are through Sagesure. I use EJ Giusti at Goosehead Insurance. 

That post was from 4 years ago. Today unsolicited text message marketing is 100% illegal without prior written opt-in consent from the recipient per the TCPA. 

The TCPA considers text messages to be the same as calls. This means that businesses must obtain explicit written consent to add customers to a subscription list and send them marketing or promotional communications. Transactional messaging, such as order confirmations or shipping updates, also requires a distinct opt-in.

Businesses that violate the TCPA can be fined per violation, with penalties ranging from hundreds to thousands of dollars. For example, the most common punishment for non-compliance is a fine of $500 to $1,500 per unsolicited message.

Currently, we are seeing inventory rise faster than we are closing sales. Home for sale is up about 20% and closed sales are down about 24%. If this trend continues as we move towards the end of the year I think we will see more price drops than we already are. Sales volume in the GNO area typically peaks in June, and then demand begins to drop. It usually bottoms out around January each year.

Months of supply for all dwelling types in the GNO area is at 5.7 which is the highest it has been since about 2014. I think it will get up above 6 months soon and may rise even further towards the end of the year pushing us into buyer market territory where prices fall.

There are more available rentals on the market than there would normally be at this time of year.

The market is tough here. Construction costs are up about 40% over the last 4 years. Insurance costs are through the roof. Add in the high interest rates on construction loans and mortgages, and it all makes for a difficult market for real estate investing. Those having some success with REI in the New Orleans area are getting deals direct to seller and using creative REI techniques.

Unfortunately, many people are forced to sell as they can no longer afford to keep their homes. I have spoken with numerous people recently who have stated this. I really feel for the seniors on fixed incomes who cannot afford to keep their homes or have to go without any insurance. It is a real mess. And there is no relief in sight on the insurance front so I don't expect the situation to get better anytime soon. 

But if you can find a good deal there is money to be made. It is unlikely to find a good deal on the market. You need to find off-market deals and preferably direct to seller. What kind of investing are you interested in? Buy and hold? Flipping? New builds?

I am located in New Orleans. Insurance here is a nightmare, putting a real damper on the market. Premiums have doubled, tripled, and even quadrupled for some. 

I have a podcast on the local real estate market in New Orleans. Check out this episode on insurance:  Episode 22: What in the world is going on with homeowners insurance in Louisiana?