Anyone here in the New Orleans market?

  • Thread starter NewOrleansHomeBuyer
  • Start date
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
Hi, I just joined the forums and am wondering if there is anyone in the New Orleans Market? I am originally from Australia and have a small portfolio there but found the US so much better for investments so moved to New Orleans. I run a real estate wholesaling and investing company here.
 
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realdeals

Active Member
Hi @NewOrleansHomeBuyer

I am from the UK but would be very interested to learn about the US and what people think about the prospects for property over there. Is the Trump a help or hinderance?
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
I think its to early to call what will happen with the US property market as there are still so many unknown variables. The most likely scenario is that there will be a crash. How big will depend on how fast employment after the crisis. Personally I am preparing for the crash and will look to buy properties subject to existing financing during the fall and when it starts to bottom start buying as many BRRR properties as I can. When we eventually start to peak again I will start selling off some of stock of BRRR's I built up.
 
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lookinginvest

Member
I think those who have liquidity available when needed will find loads of bargins over the coming weeks and months. The key will be not to try and fine tune it too much as when the market does bottom out it will probably rebound fairly quickly. Ideally, buy just before the bottom when sellers are still in control.
 
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realdeals

Active Member
Hi @NewOrleansHomeBuyer

There are suggestions that UK house prices might fall as little as 3% in 2020 if the lockdown ends by June - just wondered what you take was on this?
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
Hi @realdeals, I am not really familiar with the UK market so couldn't say. In terms of US and Australian market I think it's really hard to call as there are lots of unknown variables. If the lockdown truly ends in June, as in there is a cure/vaccine then I think a small fall would be right and the market could even take off again. That being said I think the probability of that is low and its likely even if lockdown ends there will be lots of conditions and the risk of another outbreak will exist. If this keeps unemployment high then we could be in for a full blown crash. The big unkown is how the current and future government stimulus will affect this. This is a huge unknown so I have difficulty making any prediction. I am just being cautious now, trying to buy at deeper discounts and making sure I have multiple exit strategies on deals.
 
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lookinginvest

Member
I would be interested to hear of you exit strategies as many investors are struggling just now. The bridging loan market is a major concern as many property owners will struggle to roll these over and refinance with a traditional mortgage (on an expected higher value where development has been undertaken). Bridging loans is an area whcih appears to have been over looked.
 
NewOrleansHomeBuyer

NewOrleansHomeBuyer

New Orleans Property Investor
The first point is that buying at a discount opens up the exit strategies. I market so that I get direct to seller in off-market deals. I look for distress and problems to solve so the fact that investors are struggling is good for me. Once you buy right you can do many things. I often wholesale my deals, so assign the contract to another investor for a spread. I will lease option a deal, which works really well if you bought on owner-financing or bought it subject to the existing financing. In terms of a flip, I want to make sure that if the market dips it works as rental. So buying at a discount and having these different exit strategies helps protect your downside risk. For me if the market crashes that is a good thing and I will ride the market cycle all the way through.
 
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