Real estate investors look to profit off Houston’s flooded homes

Buy damaged homes with an up to 40% discount, fix and sell at full value says Houston investor Ray Sasser

New York Weekend Edition /
Sep.September 23, 2017 11:00 AM

Real estate investor Ray Sasser has an idea for how to make a buck off the damage Hurricane Harvey wrought on Houston.

Sasser, who has been buying Houston homes for 35 years, sees potential in the city’s flooded homes. His strategy, based on his experience after Tropical Storm Allison in 2001, is to buy about 50 damaged homes at discounted prices, fix them and then sell for a “hefty profit,” according to Reuters.

He presented the get-rich-quick strategy earlier this month to an audience of about 100 investors at the Realty Investment Club of Houston. Sasser explained to the crowd how the strategy worked in 2001: the damage knocked house prices down by up to 40 percent compared to before the storm, while repairs only cost about 15 percent. Roughly a year later, he sold the homes for their full pre-storm value.

Houston brokerage Redfin confirmed that investors are following Sasser’s strategy, whether they heard it from him or have devised a similar plan on their own. Redfin’s agents reported getting four times more calls from investors after Harvey and noted the investors were interested in buying damaged homes.

“They want to go in, pay cash, get the discount and fix it up to sell,” said Tara Waggoner, Redfin’s Houston market manager, to Reuters just after Harvey.

[Reuters] — E.K. Hudson


Related Articles

arrow_forward_ios
(Photo Illustration by The Real Deal with Getty)
DC’s real estate market demands to be taken seriously
DC’s real estate market demands to be taken seriously
From left: Robert Reffkin and Rupert Murdoch (Getty, Compass)
ChatGPT didn’t write this week’s real estate news roundup, we promise
ChatGPT didn’t write this week’s real estate news roundup, we promise
(Photo Illustration by The Real Deal with Getty)
Native Hawaiians leaving state due high cost of living
Native Hawaiians leaving state due high cost of living
5603 Winslet Drive North in Franklin, TN with Paula Duvall
Charred $1.5M mansion finds buyer after days on market
Charred $1.5M mansion finds buyer after days on market
From left: Michael Dell with 25 Water Street, Alex Sapir with 261 Madison Avenue and Marc Holiday with One Madison Avenue (Getty, Edge Funds, Sapir Organization, SL Green)
Office properties (yes, office!) got Manhattan’s biggest December loans
Office properties (yes, office!) got Manhattan’s biggest December loans
Haute & Boss's Victor Hernandez
Unfinished Vero Beach estate hits market for record $60M
Unfinished Vero Beach estate hits market for record $60M
(Photo Illustration by The Real Deal with Getty)
RealPage faces another class-action lawsuit, this time in Florida
RealPage faces another class-action lawsuit, this time in Florida
Prada CEO Gianfranco D’Attis and 16 Gould Street (Getty; Google Maps)
East Hampton board rejects Prada CEO’s request for 11 variances
East Hampton board rejects Prada CEO’s request for 11 variances
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...