Lendors in New Orleans

USMI · Joined: 24 Aug 2006 Posts: 5

IS ANYBODY STILL LENDING THERE???
:roll:

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Yup. What do you need?

USMI · Joined: 24 Aug 2006 Posts: 5

Here's the deal....
I have been in the business as a real estate investor, mortgage broker and foreclosure specialist for almost 20 years.
I am currently diving into the Real Estate Investors market in New Orleans. I spent some time in New orleans very recently and what I saw disturbed me very much. I had no idea the city was sitting in almost the same state as she was days after the storm.
Curiosity drove me to do more research and to spend time talking to the locals.
what I came away with is this...
The Government has gone beyond dropping the ball in New Orleans. (Thanks Spike, you showed a sliver of the truth).
A great amount of the people want to come back to the city that they love.
The idiots that do have property there are charging rates that will send them to Hell on a special boat.
There ARE more than a few who do not want to come back, ever.
Logic tells me that it is time for those of us who know how to move in, buy the unwanted property, do the rehab and get people places to live.
I am not talking about monopolizing off of agony. I am NOT talking about "stealing property" out from under unsuspecting homeowners.
I am talking about doing something that can benefit the communities and make investors an income at the same time (no, not RICH overnight).
We KNOW they are NOT going to forget New Orleans.
They are also under a great deal of scrutiny and many eyes are upon them, this time around. The levees will be rebuilt and they will be much stronger.
There are a great deal of homeowners who DO want to leave, they have collected a good percentage of their equity from the insurance company and they just want to go.
Give them the 20% the insurance company lacked and they are blissful. Do the rehab, put people in at REASONABLE rates.
Everyone wins.
Most of my investors will be coming with their own cash. Once we get rolling, I have no doubt I will be able to get some of the hard money down there. What we are going to need is the conventional money after the rehab is done.
Talk to me :lol:
Kimberly Jones

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

THat's not really the problem. We have renovation (rehab) loans available for the financing of the fixes. Can also do the conventional/govt loans on the properties there when they have been rehab'd. The biggest problem is that property values have skyrocketed because there is such a lack of available property.

Took out your email, just talk here please ;) Per our sig and ad policies.

USMI · Joined: 24 Aug 2006 Posts: 5

I think you and I need to talk ;-)
:lol:

chow · Posted: Fri Aug 25, 2006 11:16 am Post subject:

You should also do some research about the kinds of structures will withstand the hurricane force winds, Who's willing to insure those properties, and let's talk about flood zones. If you fix or build homes, then your buyers will need to be able to insure them. One of the reasons people are running into dead ends is the insurance companies have a problem with that area.

We know more than a few- went bankrupt. I would think you might want explore multifamily housing efforts too.

http://www.hud.gov/renting/index.cfm

This could help people move back, and as time goes by, become homeowners again.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

Can do reno on multi family properties as well :)

bigdyce45 · Joined: 11 Jul 2006 Posts: 25

I love your ideas. I would really like to be one of your "go-to-guys" on this. I've been talking about doing something like this but didn't really know where to begin. I am from New Orleans, currently living in Houston. I've been dabbling in real estate investing here from the bird-dogging side, and I've really developed a knack for spotting good deal and putting them together. I have a few potential investors that might be willing to dive in as well, if we can make it make sense. Like I said I'm from New Orleans, I know the area, I know the neighborhoods, I know the people. I also have a good friend that sits on the Mayor's Rebuilding Committee, so that might give us a leg up on the competition. Let's Talk.

bigdyce45 · Joined: 11 Jul 2006 Posts: 25

The biggest problem in New Orleans in terms of real estate is INSURANCE!!!...From what I hear, the big companies aren't writing any NEW policies, only renewing old ones. The agents and LOs I've talked to say there's only one major company (can't remember who) writing policies and they are so backed up it's taking on average 45 days to close on a home.

USMI · Joined: 24 Aug 2006 Posts: 5

I believe the insurance companies are going to be "hanging back" until ....
well, until New Orleans begins to make the transition.
I am going to go into more detail on this topic soon, but for the moment let me just say that New orleans as it was will never exist again.
I know it hurts but I am hoping that at least some of the "natives" can get over the initial pain and get ready for the fight.
From the inside looking out, I can tell you that there are executive summaries, business plans, drawings, numbers, etc. already sitting on the desks of bankers, lenders and venture capitalists.
The money wants New orleans. I doubt that we can even think about winning the war, but we can put up a hell of a fight. We can stand and make them work for it. We can make them buy it from the people instead of taking it from them while they are busy fighting for their last breath.
I am not even going to get off on that tangent right now...this will turn into a 5 page post :roll:
The simple answer is the insurance companies are going to hang back until the city begins to conform to the "new insurance requirements" and then they will be right back in business.
If you are not aware, a vast majority of New orleans is going to be straight dirt in just a few more minutes.
Pretty much everything that will be built and anything that is allowed to remain has to be raised a minimum of 3 1/2 feet to 11+ feet in the air.
This will be done and it will be done at the request of the insurance companies.

Once they begin to feel "safe again" they will be back.
For now, I have that high on my list of "things I need to tend to" as I call my troops together.

I have to drop one "pet peeve" here....
I would love it if someone could at least give me one good excuse as to why these insurance companies can, in the light of day, in front of God and everybody, screw so many people so royally?

Hell, if I were one of the major carriers, i would be there with bells on.

I (fill in the blank with your favorite insurance company to hate) have managed to screw a multitude of people out of untold and no doubt unimaginable amounts of money and I am sure I can scoop up the last bits of change....what do I have to be afraid of? Even if the city gets hit again, I know I am going to find a way out of paying anyway...

The insurance companies have left multitudes of people..PEOPLE JUST LIKE THEIR MOTHERS, BROTHERS, SISTERS ..THEIR OWN SELVES...in the dirt. Screwed them royally. Took money from them for year after year. Gave them nothing when they needed it most.

And the rich just get richer....

Do we have any insurance folks out here anywhere???

chow · Posted: Tue Sep 19, 2006 11:13 am Post subject:

My husband works for one. His company is broken into seperate states but all work under one umbrella. (It's one of the "Farms")

That part of the farm went Bankrupt after a gazillion claims.

bigdyce45 · Joined: 11 Jul 2006 Posts: 25

Well we all know "Bankrupt" doesn't always mean "Broke". I can understand what affect the disaster had on their bottom line, but the "bottom line" is that they all knew the risks associated with holding policies in New Orleans and there is no excuse for not standing by their customers when they needed it most. The insurance companies can bounce back from this tragedy, but for a lot of New Orleans residents, their insurance policy was their way to bounce back.

chow · Posted: Wed Sep 20, 2006 1:36 am Post subject:

Insurance companies are insured by Assurance Companies who-as I understand it-insure them up to a certain amount of loss. Some of the companies have been picked up and purchased who are able to operate in that area again.

But, the property will have to be built to standards that the insurance underwriter's can say is well worth the risk of insuring it.

Look at it this way:

If it was your money-would you lend it, or insure it if the construction was not something that would withstand floods, high winds, and all of the other issues we know will be present with the gulf waters warming up?

As much as I would love to move to a coastal area- I wouldn't move into the gulf area or FL just because of the expected change in what mother nature can and is expected to do according to forecaster's.

You all are going to have to investigate who's willing to venture into the area. It's going to take a few years to make companies have a warm and fuzzy feeling.

bigdyce45 · Joined: 11 Jul 2006 Posts: 25

Oh no, I completely understand the insurance companies' position on new policies. I totally agree. I was strictly talking about the companies who, in the wake of Hurricane Katrina, were using loopholes and twisting terms to get out of paying thousands of residents. I saw it happen first hand.