Moneymoney

Thu Oct 12, 2017, 10:35 AM

Distressed Investors Are Already Buying Houston Homes for 40 Cents on the Dollar


Flooded homes, big money, and hard choices.

By Prashant Gopal
October 12, 2017, 5:00 AM EDT

Bryan Schild drives through the byways of Houston looking for what could be the investment opportunity of a lifetime: homes selling for as little as 40¢ on the dollar. “We Pay Cash For Flooded Homes $$$$$$$$ Don’t fix it, sell it. Quick close,” read the signs piled in the back seat of his Ford pickup.

Schild stops by a ranch-style house where 74-year-old Paul Matlock lives with his wife, disabled from multiple sclerosis. Matlock is desperate to leave and is considering Schild’s offer of $120,000—half the home’s value three weeks earlier. A half-dozen other investors have made offers, one as low as $55,000. “The whole thing makes me feel like there’s a bunch of vultures sitting on my back fence,” Matlock says. “They’re waiting for the dead body to fall over.”

It’s axiomatic on Wall Street that the time to buy is when fear overtakes greed—when blood (or, in this case, water) is in the streets. Now some are eyeing the billions of dollars in hurricane-ravaged property in Texas and Florida and deciding it may be the time to take out their checkbooks. Investors such as Schild figure they can buy low, either fix up and flip the houses or rent them out for several years, and unload them later, doubling their money or more.

Schild making Matlock an offer in his flooded house.PHOTOGRAPHER: PRASHANT GOPAL/BLOOMBERG
Those kinds of bets have often paid off. Buyers who snapped up co-ops and office towers when New York was near bankruptcy in the 1970s made a killing. More recently, companies including Blackstone Group LP and other marquee names bought foreclosed homes after the 2008 financial crisis and are sitting on billions in potential gains.

more...

https://www.bloomberg.com/news/articles/2017-10-12/investors-head-to-houston-to-buy-from-panicked-homeowners

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Reply Distressed Investors Are Already Buying Houston Homes for 40 Cents on the Dollar (Original post)
RCW2014 Oct 12 OP
Shkreli Oct 12 #1
Zappa Dappa Doo Oct 13 #3
rahtruelies Oct 12 #2

Response to RCW2014 (Original post)

Thu Oct 12, 2017, 10:43 AM

1. One of my associated firms already has a presence in Puerto Rico doing detailed assessments.

Thats going to be a nice place when we get done with it!

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Response to Shkreli (Reply #1)

Fri Oct 13, 2017, 12:17 AM

3. Whatever happened to your foray into the San Diego real estate market

earlier this year looking for distressed properties? Did you ever consummate anything? (Real estate, of course. We all have our betting positions about the "other").

As you know, I live here/there and I'm really concerned as my house (paid for!) has appreciated over $200,000 in the last 12-18 months, which I was feeling pretty good about until I read your post. Should I sell now and if so, do you recommend I rent instead? But what about capital gains? Or is there a scenario where I can invest the proceeds of the sale into one or more of your PR properties to avoid all or a portion of taxes?

Thanks in advance for what will no doubt be some well-informed investment advice!

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Response to RCW2014 (Original post)

Thu Oct 12, 2017, 11:33 AM

2. ********************* CLASSIC FAKE NEWS ALERT************

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