It is Friday – less than a week since the winter storm covered most of the US. I have been in constant communication with Investors across Texas and the southwest.
For Houston – The 2021 winter storm will be bigger than hurricane Harvey for real estate investors and homeowners.
The biggest mistake I made was not buying MORE properties after Harvey. I won’t make that mistake again and neither should you.
Our rough estimates are about 15% of Landlord portfolios have been negatively impacted by the storm. This could be losses as benign as exterior plumbing too as severe as whole house flood from interior plumbing. We also found that if the portfolio has over 50% of properties older than 1990 – the loss ratio is almost 25%.
I was texting with a buddy who’s in-laws are in the plumbing business. A typical year – their company – will receive 9,000 calls for service. In the last three days they received 6,000 calls. Clearly homeowners are trying to save their properties.
What does all this mean for the real estate investor? A huge opportunity to purchase problem – damaged – properties from homeowners and investors that do not wish to deal with a lengthy rehab.
Just based off our estimates alone 250K – 500K houses will need some form of rehab – just like hurricane Harvey.
The biggest mistake I made was not buying MORE properties after Harvey. I won’t make that mistake again and neither should you.
Next week we are hosting a Mastermind preview event. I recommend you attend. RSVP Here –
https://www.eventbrite.com/e/mastermind-preview-winter-storm-opportunities-tickets-142251472985