Real estate investors are eager to buy flooded homes in Houston.
Since hurricane Harvey landed in Texas, the historic flooding has damaged tens of thousands of homes in the Houston area, and more than two months later, many of the homes that were hit by the storm are in trouble. They are now destroying their families as financial channels.
This has benefited investors eager to buy distressed homes at a low price.
Call it the post-xavi frenzy.
Corey Boyer, an investor in syplath, Texas, has already made a lot of offers – many of which have not been seen.
“At this point, I have seen a lot of the room, so I have a very good idea, we are to get in,” he said, in northern unlock Houston Texas Humble rose brick before walking out of the door.
Inside, the water from the exposed bathroom pipes reverberates through the skeleton of the home. The water – soaked insulation and gypsum board have been torn off. Previous kitchens and living rooms are now mostly wooden studs and copper wires.
“Because it’s unfortunate, it’s one of the best things for people like me, because you see everything,” he explained.
For a house worth $350,000 before Harvey, Boyer said he had a $135,000 contract, which he estimated would cost at least $60,000. He wants to make sure that the submerged home can be revitalized and become a market again.
But the risk is how long it will take to find a new buyer once a new buyer is found. Would anyone want to live in a gated community in Harvey?
Boyer bet they will – as long as the price is right. Many other investors are also taking part in gambling, sorting through one of America’s hottest real estate markets and surrounding communities.
Boyer says homeowners who are underwater can also benefit from his business plan.
“It’s not something they enjoy with the vultures,” he said. “They are not easy, they are faced with a bad decision or another very difficult decision.”
According to the American consumers’ federation, about four-fifths of the homes in the area flooded by Harvey’s flood are not covered by flood insurance. Many homeowners who buy insurance are still waiting for insurance checks, while paying utilities, taxes and mortgages – all for housing.
For Jimmie Sue Mayes, selling her flooded house was a safe thing. She and her husband owned a rancher in Houston’s mayland neighborhood for the first time in a century, and some of them have been submerged three times in the past three years. In August, when the water rose in a building on a floor, they fled to the second floor next door with their three children.
“Reconstruction is not an option for us, because it’s really like stealing our children,” Mayes said. “Really, really terrible.”
Mace said she and her husband couldn’t raise the house. Instead, they want to sell their homes essentially the value of the land will help pay off the mortgage.
Lawn tenders are interested in buying flooded homes already in flooded areas around the Houston area.
But she says there is another cost of selling – a disappearing neighborhood.
“It’s a ghost town,” said Cynthia buckley, who was waiting for the rescue when she sheltered her family on the second floor. “We don’t feel safe here, especially after the weekend or the night.”
The first floor of buckley was flooded after Harvey, but she said her family decided to rebuild. However, she worries that the neighbors who left the flooded house will not return.
That’s why real estate investors like Eddie Gant say they are preparing for housing transactions in the Houston area, which could last for years.
“We’re still in the so-called embryo phase,” says Gant, who owns Advantage House, whose slogan is “we buy ugly houses.”
“This is where it gets hairy, maybe a little ugly,” he added. He thinks that many homeowners owe their houses a lot of money and they will leave them.