Ever since the aftermath of Hurricane Katrina many neighborhoods have struggled with rehabilitation and repair. There was much interest by investors, initially. Unfortunately there weren't very many quality contractors or subs. A lot of contractors and handyman abandoned their jobs. They had trouble getting materials at times and a trouble with vandalism and fears of their own safety at other times. Additionally there is a lot a price gouging by sobs and workers due to the extreme demands on their services
Many New Orleans homes and homes in adjacent townships such as Slidell were simply abandon. This caused a temporary crisis for the hard money lenders who facilitate the funding for the rehabilitation of homes. One such company recently had to take back 200 uncompleted or shoddily completed homes that caused much damage to their business on top of the current credit crunch.
The New Orleans real estate market is anticipated to experience a boom starting the second half of 2008 (after the current mortgage credit crunch subsides). There is much opportunity for investors, contractors and handymen to go take over half repaired homes or unrepaired homes and make them beautiful. Profit potential could be good especially if the market is anticipated to strengthen. The opportunity is soon. New Orleans needs your help to restore its beauty, and to even enhance its beauty.
If you do decide to invest in New Orleans Real Estate, do your homework and make your own decisions. Go up and inspect the property yourself. Try to find a reliable contractor ahead of time. You can start with searches on New Orleans Contractors ahead of time. Try to verify their reputation with the local chapter of the Better Business Bureau and the Chamber of Commerce. If you are not going to live in New Orleans or near by, it would be a good idea to hire a reputable Realtor to watch over your property while trying to sell the property.
Another strategy: Call local New Orleans Realtors and find out the good neighborhoods in which homes are selling. Find a Realtor by asking around who knows how to deal with rehab investing. Give the real estate agent your criteria for purchasing a rehab house up front and let them find a good deal for you. Of course, we're assuming that you've had plenty of education and experience in rehab investing. To ensure things are done right you may want to move up to New Orleans. Many homes that have been flooded have second floors that are in tact and you could stay on the top floor. Once you're in New Orleans will know the ins and outs of what's working and what's not working. This strategy has been quite profitable to a handyman we know.
We were able to locate an investor who stuck it out. He purchased properties with a partner in mid-2006. His partner did a shoddy job and then later abandoned the job leaving this investor quite a challenge since he was the finance partner of the deal. Fortunately he was able to find a great contractor who is doing a fantastic job he was very fortunate. He and his wife made a great team and it's a beautiful work. Finally after year and a quarter the homes were finished and are in beautiful condition. "I feel proud to be a part of adding beauty back into the rich community of New Orleans. It's a great feeling." - says Chris
