• 0
  • Home
  • About Us
  • What We Do

Shopping Cart

GPAM
  • Home
  • About Us
  • What We Do

Fire, flood and profit: Real estate investors are chasing crises

Homes damaged in Hurricane Katrina. (Getty)

Homes damaged in Hurricane Katrina. (Getty)

In the wake of natural disasters, some real estate investors are finding opportunity for profit.

So-called “disaster investors” are buying up properties damaged by floods, wildfires, hurricanes and other catastrophic events — and flipping them for a gain.

The practice is becoming increasingly common as the number of natural disasters climbs in the U.S, the Wall Street Journal reported. Last year saw the fourth-most natural disasters since 1980, causing an estimated $1 billion in damages, according to data from the National Centers for Environmental Information (NCEI.)

A string of wildfires in the Los Angeles region over the last few years have caused extensive damage, including last year’s Woolsey Fire, which led to an estimated $5 billion in real estate damage.

Lakeland, Florida-based investor David Dey, 45, has invested in multiple properties following disasters, including Hurricanes Michael, Katrina and Harvey, which hit southern states including Louisiana, Texas and Florida.

“Any place that there’s a need, there’s an opportunity,” Dey told the Journal. “I’m not hoping for the storms, but they happen.”

Investors are driving up the number of sales in affected markets. After Hurricane Michael hit Panama City, Florida, last October, sales dipped but ultimately increased. In Santa Rosa, California, home sales jumped 17 percent in the five months following a 2017 fire, according to data from Zillow. Home prices, on the other hand, can be volatile.

In areas affected by disaster, homeowners often choose to sell their properties, and those without insurance may be forced to — sometimes at a low price.

While disaster investors argue they are helping communities rebuild, the practice has faced criticism from storm-affected residents who believe they are exploiting vulnerable communities.

“It’s insulting,” Scott McElroy, owner of a damaged property in Mexico Beach, Florida, told the Journal. “You’re already looking at monetary loss. And then somebody offers you some ridiculously low price.” [WSJ] — Sylvia Varnham O’Regan

Powered by WPeMatico

  • 30 July 2019
  • The Real Deal
  • Uncategorized
  •  Like
Coldwell Banker will shutter 1 of its Beverly Hills offices, relocate about 150 agents: sources →← Developer plans to build tower in Historic Filipinotown
  • Recent Posts

    • LA County greenlights self-certification for Altadena rebuilding May 8, 2025
    • Irvine Company aims to transform golf course into village of 3K homes May 8, 2025
    • Former LA police commissioner, prominent attorney to list Bel-Air estate for $24M May 8, 2025
    • Movers: Gambino Group nabs LA, NY agents May 8, 2025
    • Sacramento investor lists 270K sf DTLA office park leasehold May 8, 2025
  • Recent Comments

    • Archives

      • May 2025
      • April 2025
      • March 2025
      • February 2025
      • January 2025
      • December 2024
      • November 2024
      • October 2024
      • September 2024
      • August 2024
      • July 2024
      • June 2024
      • May 2024
      • April 2024
      • March 2024
      • February 2024
      • January 2024
      • December 2023
      • February 2023
      • January 2023
      • December 2022
      • November 2022
      • October 2022
      • September 2022
      • August 2022
      • July 2022
      • June 2022
      • May 2022
      • April 2022
      • March 2022
      • February 2022
      • January 2022
      • December 2021
      • November 2021
      • October 2021
      • September 2021
      • August 2021
      • July 2021
      • June 2021
      • May 2021
      • April 2021
      • March 2021
      • February 2021
      • January 2021
      • December 2020
      • November 2020
      • October 2020
      • September 2020
      • August 2020
      • July 2020
      • June 2020
      • May 2020
      • April 2020
      • March 2020
      • February 2020
      • January 2020
      • December 2019
      • November 2019
      • October 2019
      • September 2019
      • August 2019
      • July 2019
      • June 2019
      • May 2019
      • April 2019
      • March 2019
      • February 2019
      • January 2019
      • December 2018
      • November 2018
      • October 2018
      • September 2018
      • August 2018
      • July 2018
      • June 2018
      • May 2018
      • April 2018
      • March 2018
      • February 2018
      • January 2018
      • December 2017
    • Global Property and Asset Mangement, Inc.
      137 North Larchmont
      Los Angeles, California 90010
      +1 213-427-1127

    © 2025 GPAM