Some real estate executives in Texas are hoping to get rich quick with homes damaged by Hurricane Harvey.
Longtime investor Ray Sasser detailed the strategy at a real estate conference in Houston this month: Buy up to 50 flooded homes for a fraction of what they’re worth, fix them and flip them for a hefty profit, Reuters reported.
He said he first tried the strategy after Tropical Storm Allison flooded the city in 2001 — purchasing homes for almost half of their pre-storm value, spending about 15 percent on repairs, and selling many of them at full value a year later.
The quick success of the plan was actually surprising to him, according to the outlet.
“This can’t be true,” Sasser said.
While Harvey-hit homes in the Houston area may be a riskier investment than houses damaged by Allison, investors are nevertheless rushing in to snatch up the flooded homes.