Hurricane Harvey - Now What?
Ali DawoodPro Member
Rental Property Investor · Frisco, TX · Member since 2014 · 25 posts · 9 votesHurricane Harvey - Now What?
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Developer · Saraland, AL · Member since 2013 · 93 posts · 52 votes
9yThere are a lot of variables. There is going to be huge demand for apartments. Not only are tons of people displaced, you will have an influx of FEMA employees, insurance adjusters and contractors.
I was building a property in Pensacola when Ivan struck. We were just turning our 1st few buildings. Building inspectors became FEMA agents, but we were fortunate enough the housing demand was so high, they came out and performed our inspections. I quickly finished construction on the 240 units. They were 100% leased, with a waiting list, and people moved in as quick as I could get temporary CO's. The company I worked for sold the property within a few months, and walked away with a huge profit.
When Isaac hit New Orleans, the demand wasn't as high. At that time I was able to negotiate claims on several large properties. The hurricane deductible on (1) property was $1M. The initial offer from the insurance company was $1.9M. After negotiations we settled at $2.9M.
You need somebody that knows what they are doing, or you will leave money on the table. Lots of it. You also need to get an adjuster out there quickly, and remediation under way. You need to be smart. You can get a lot of deferred maintenance covered and reposition your property. You also want to get units back on the market early, as this is peak demand.
Feel free to PM me if you have other questions about strategy.
63 Replies
- Investor · Houston, TX · Member since 2016 · 4 posts · 1 vote9y
Don't wait to file your claims...do it asap...KPRC2's Amy Davis explains...
- Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes9y
I watched a video with an engineer saying in about 3 decades another 3 to 4 million are moving to Texas. I live in GA but have friends there.
The engineer said about 25% more of the land has been converted to roads,sidewalks,bridges,etc. so you have lost a lot of natural forests that could absorb the impact and runoffs better from large downfalls and left with concrete.
Some Insurance companies have said that median sea levels are rising and that even some inland areas like in Florida with extensive canals and waterways are at risk of flooding.
- Spring, TX · Member since 2016 · 243 posts · 203 votes9yjust got word my house didn't flood, and my parents were picked up by boat this morning from their house! it's incredible all the people helping out
- Joplin, MO · Member since 2017 · 20 posts · 10 votes9y
@Ray Lai & @Debra Grumbach You have a point, I also think it is best to stay put for now until Houston itself has stabilized some. I got words from the property manager today that nobody can go around to even assess the damage yet, glad I didn't make the drive. I'll be helping with recovery from home state instead.
- Investor · Jackson, MS · Member since 2014 · 1k+ posts · 769 votes9y
Originally posted by @Bart H.:
If what happened in Jackson after Katrina is like what will happen in Dallas then it is a good time to sell, because prices there will sky-rocket. Five years later, however. property values in Jackson plummeted.
- Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes9y
@Susan Maneck Our property values in the Dallas area have been basically sky-rocketing for the last year or so. This is going to only increase it. Many of the jobs in the Houston area cannot be moved to other parts of the state so long term many of the people will be rebuilding in Houston.
Short term this will certainly increase our huge shortage of construction workers in the state. In the Dallas area very few people will be willing to rebuild in the Houston area because of the steady jobs here. The biggest builders in the country cannot build houses here as fast as they sell them.
Most likely this will push the vacancy rates below 3% in the multi-family market in most of the Metroplex. Many of the submarkets were already below 4%.
So if anyone has read posts about my concerns of the huge rate of apartment construction here, forget it.
- Investor · Baton Rouge, LA · Member since 2014 · 280 posts · 219 votes9y
Originally posted by @Brandon Johnson:
Many have posted solid advice about how to proceed with flooded property.
@David S. posted a great list of points to consider. Here are a few more.
Your most immediate need is to file your claim if you have insurance and then to get to work gutting and drying the structure. Do not cut corners on this especially if you had flood insurance. It is recommended to gut to at least 1' above the water line and remove any wet material. You don't need to pay a high priced contractor to do this work, but you at least need one supervisor or yourself who can oversee the work and make sure big mistakes aren't made.
Do not think you can get away with keeping base cabinets and saving existing tub surrounds if the water got that high. That will only trap mold and cause problems for you in the future. I had to overcome this thinking too and decide to do full gut outs and replace everything that was affected.
Housekeeping goes a long way, so keep everything really clean and swept for the most efficient drying and decontamination.
HIRE A PROFESSIONAL to decontaminate or treat for mold and get a certificate. You will be glad you did this especially if there is a chance you will go to sell this previously flooded home. Also get a building permit. It is tempting to bypass this step especially if you are dealing with multiple units and don't normally pull permits, but there are too many risks to not getting a permit.
Hire a 3rd Party Insurance Adjuster who works for you and NOT the insurance company. In most cases they do not get paid until you get paid. Hire this person prior to re-construction and you will be glad you did because in almost all cases they will get you paid substantially more than the insurance adjuster says your claim is worth. PM me for a recommendation on a great 3rd party adjuster if you need one.
Private Market Flood quit writing new policies in Baton Rouge and flood insurance was more expensive here for the first 12 months after the flood. A year later, private market has reopened and rates are still affordable. If you buy flooded homes and private market flood is not available, get a flood elevation certificate from the seller and make sure the property is not 1' or more below base flood elevation. The lower you are in relationship to the base flood elevation, the more expensive your flood policy will be. Of course being above base flood elevation is ideal if you are buying flooded homes.
Do not pay a contractor in advance of any work. EVER!!!! I made this mistake a couple times and will not do it again.
Houston area residents will witness an outpouring of support and help from neighbors showing up to lend a hand. People will be cooking giant pots of jambalaya and passing plates out to neighbors working to restore damage. Church groups and volunteers will show up to help folks who don't have help to get their properties gutted out. Friends will house friends as well as strangers in need of a roof and a bed. People are generally resilient in these situations.
If you are looking to expand your business, do not be fearful of what is to come. Take advantage of this opportunity to pick up some really great deals and make intelligent decisions about what and where to buy. There are usually several silver linings to be found in an event like this. While many homeowners will be devastated and not have the means to rebuild, many others will, after some hard work and sacrifice, be able to move back into the newly remodeled home they only wished they had before the flood. Look for the silver lining and try to figure out why this happened for you rather than to you. Prayers from Louisiana going out to all of you who are impacted.
See you at the top!
I knew some Coonasses would be cooking jamabalaya for the good folks in Texas!!!
- Developer · Saraland, AL · Member since 2013 · 93 posts · 52 votes9y
Something else to keep in mind for coastal areas. If you have old cast iron plumbing drains, and sea water was mixed with the flood waters - You need to try and get plumbing included in your claim. Many will overlook the corrosive effect of the salt, but it will likely lead to systematic failure, and you want realize it until everything else is fixed. There are properties in New Orleans still dealing with issues, from Katrina.
- Rental Property Investor · Catonsville MD · Member since 2015 · 135 posts · 44 votes9y
Here is a vid of my nephews best friends house.
https://www.youtube.com/watch?v=6_LJy7vqjyQ&featur...
My sisters friends sons friend came over to help(not at this house) and he was electrocuted and died, she(my sisters friend, was there when it happened)
My sister and family are ok, very sad situation
- Member since 2018 · 2 posts · 0 votes8y
Global warming has increased the strength of hurricanes, Which cause the intense damage and also make the life of people difficult. Thus to help such victims suffering from natural disaster, all must come together to join organizations like mission humanitaire Afrique and help the victims by providing them the needy things and make them safe.
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