Hurricane Ike Impacts the Houston Real Estate Market

                                                                                         

Now that Hurricane Ike has came and left its impact on the city of Houston Texas, many real estate speculators and potential home owners have their eyes glued on the area trying to determine its total impact. One of the most obvious and visible impacts has been on the total number of distressed properties that have appeared on the market in the greater Houston area.

A New Boom

For investors and independent entrepreneurs, this means that the Houston real estate market now holds more opportunities then ever as redevelopment monies are now literally pouring into the area. However; for someone looking to get in on this new real estate boom there are a few items that have to be taken into account.

Loans on Distressed Properties

Getting a loan on a distressed property is much more difficult then getting a loan on a property that is intact. Even though you stand to make a sizable profit on the finished home, the bank is going to want to be sure that they aren't left repossessing a home that is not intact should the loan fall into default.

Good Credit Required

This means that you will need to have good credit and some collateral in the form of real property before you approach a lending institution for a home loan on a distressed property. The fact is, that many lending institutions won't count the home when considering the actual value of the total property.

A Tight Labor Market

Also, be prepared for labor costs that can spike up on a monthly basis. Many investors who bought distressed properties in New Orleans after Katrina were caught off guard when they found that labor costs almost doubled in the year after the storm and contractors who were booked solid with work wouldn't even return their calls. This means that you may have to do the work yourself and or get your own work crew together.

About the author:
Article by Daniel Mummski. On our website we have articles on Houston Real Estate and we also host the top info on Dickinson Real Estate


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