Ray Sasser, a Houston real estate investor, has come up with an idea on how the catastrophic destruction brought upon by Hurricane Harvey can be turned into a silver lining.
Flood damage in particular has caught the eye of Sasser, who has been involved in the Houston industry for 35 years. Based upon a similar strategy he developed during 2001’s Tropical Storm Allison, Sasser plans to purchase approximately 50 homes, extensively renovate them, and then sell them for a profit.
At the Realty Investment Club of Houston, Sasser presented an in-depth analysis of his plan to a group of nearly 100 real estate investors.
In 2001, Sasser claimed that the damage from the tropical storm decreased the value of affected homes by up to 40 percent. One year later, and after his restorative efforts that cost only 15 percent of the market price, he sold the homes at their pre-storm value.
Houston-based brokerage Redfin has confirmed that current investors are using Ray Sasser’s strategy, or are using plans of their own that used his as a framework. Redfin noted that after hurricane Harvey they had received four times as many calls from investors than they typically do, with each of the callers being interested in ourchasing damaged homes.
Redfin’s Houston market manager Tara Waggoner said it best:
“They want to go in, pay cash, get the discount, and fix it up to sell.”