All Forum Posts by: Kimberly Jones

Believe me Ruth, if you live here and love it, you will do very well investing here. We have a saying, "If you love New Orleans she will love you back." I like to add, "if you try to use her, she will get you back!" ;)

@Braden Smith I saw this earlier and my first thought was "God only knows what things might be like in this city two years from now!" I didn't say it "out loud" though because there is no way to explain it to folks who are looking this way from afar. At the time I chose to say nothing at all, but here you are dragging me back in ;)

I often feel like a broken record but I am going to say it again anyway...if you do not really know New Orleans you are in for more than a few surprises, whether we are talking real estate or not. This city is like no other and until you spend time with her (real time, not just a vacation visit here and there) there is nothing I can say to prepare you. I realize that sounds a little dramatic but I promise you, beyond a shadow of a doubt, it is true. 

When I came here I had decades of Investment Real Estate experience behind me. I came out strong and quite literally almost got my whole *** chewed off. Pretty much everything I thought I knew had to be put in a box and stored on a shelf. Maybe that is one of the reasons I love New Orleans so much, she certainly taught an old dog many new tricks! 

All that said, let me address the concept of trying to pre-plan two years into the future in this city.....(I swear I am not being an *** when I say this) I can't even answer for laughing!! We live here and we truly have no clue. Ten years ago New Orleans was considered to be the next best thing to Sodom and Gomorrah. Multitudes of people said katrina was an act of God and the city was destroyed because it was full of evils. Today we are like the freaking Golden Child and we live in an International spotlight. When it comes to Real Estate guru after guru flows through, spouting their crap, with no real knowledge of where they are. People are moving here from everywhere, Investors are pouring in, on the surface it all looks good....until you actually live here OR own property here. 

Do the gurus tell folks that our police force is almost non-existent? Do they tell you what the crime rate is here???? Do they let you know that at any given time there is a backlog of 911 calls that number well over 50 in any given district? Do they tell you that you can wait for days for cops to show up to take a report that probably won't make it back to the station? Do they have a clue that you really do have to love this city to live here? 

I didn't just spit that little rant to sound crazy, it REALLY does play a big part in what may be going on two years from now. The now infamous Bywater is a prime example. It went from "down river blue collar" to seriously high dollar, highly sought after Real Estate. The thing is, folks are increasingly talking about moving back out, just that quick. They are figuring out that paying $300k+ actually sucks when you can't even walk down your own block without getting robbed. Don't even get me started on the folks that paid $250k+ just across St Claude Ave., only to find themselves witness to regular murders on their block.

Don't get me wrong, I am not saying there is not money to be made here. I am just saying do not venture here with stardust in your eyes. If you are looking for easy street without bleeding on a lot of pavement, this is not the place for you.

Ruth, please do not take this as a direct answer to YOUR post. My answer is directed to all who are thinking about investing here just because they have heard things. There is a lot more to this City than meets the eye. Even when you think you have it figured out, I swear she will change right before your eyes. 

Braden, this little moment of truth is all your fault!! Did I come off too harsh? I probably shouldn't answer these kinds of questions when I have one eye on the Saints, even if it is only a practice game....

We are dealing with them. So far, nothing but credit cards that we could have applied for all by ourselves. 

If you are planning on getting a mortgage you might as well wait to get an appraisal. Lenders all order their own, you will just be paying twice. How is your credit? Good job history for the past 2 years? (I don't expect you to answer these questions in public, just giving you the things that come into play) Do you have a strong banking relationship anywhere? Banks are cool but investors do well to hook up with a Broker who understands investment financing. A good broker can show you options, depending on your investment strategy. 

I am sure @Braden Smithcan help you out with that.

It has been a long painful haul to get back on track and things are definitely looking up. The thing is, New Orleans is unlike any other place. Our laws are even different from all other States. If you try to step here without either educating yourself, or having someone local to help guide you.....you could wind up making some costly mistakes. It is also important to have a very good understanding of the neighborhoods/areas. You can literally cross one street and find the difference in values to be drastic. If you plan on rehabbing, keep in mind our housing stock is very old. If you have never rehabbed 80-100 year old properties (most of which are severely chewed up by termites), you have a whole new experience coming at you. Find yourself in a historical district and the game hits a whole other level. Oh, do not let me leave out the people here. Friendly on the surface, totally untrusting of "outsiders," fiercely protective of their turf. There are several threads out here on that topic alone.

Yes. The minimum loan amount is $300k, LTV 75%.

Even Visio is looking at credit now.

I think the key is in NOT trying to do things in a new way. I know all kinds of people that do the bandit signs and the mail outs and they do get deals BUT the best deals in this city come from getting out there and talking to people. You know how it is around here, business is done face to face, usually involves food, often involves cocktails, and always involves good old fashioned conversation. Mail gets thrown in the trash and phone calls go unanswered, word of mouth is the best way to get around. Be active in the community, talk to everyone you can, let people get to know you. Always approach the subject of buying houses in a way that let's people know you are there to help. Be honest, upfront and fair with sellers. Do not try to make a killing while giving them a fraction of the profit. You know how tight people are here. If you help someone out AND make them money, they will tell friends and family and your phone will ring. 

I believe you are the first NOLA newbie that at least understands what you are up against. I try my best to tell out of state folks what things are like here. I am not exaggerating when I say you step back about 200 years, things are still done the old fashioned way. New Orleans is like a prickly pear, if you don't know how to peel her you surely cannot eat her.