So You Want to Be An Investor in New Orleans

Because I write about West Bank real estate, I get a lot of calls from people out of state who think they want to purchase investment properties in the New Orleans area.  While I applaud their entrepreneurship, these conversations usually don’t result in many sales due to a number of reasons.  Before you decide that you want to invest in New Orleans (or any other area of the country for that matter) here are a few tips:

 

Visit the city that you are thinking about investing in

Take a train, plane or automobile.  Spend a little time checking out the city.  Get a feel for the place.  You cannot decide if an investment is a wise one if you have never even visited the location you are considering putting your money in.

 

Determine what areas or neighborhoods you are interested in

Calling agents to ask "what’s a good area to invest in" sends up a red flag that you are either an amateur investor or not a serious prospect.  Every REALTOR® has their area of specialty.  Mine is single family homes on the West Bank of New Orleans and many callers are surprised to find out that they did not suffer from 12 feet of water in them.  Were there flooded homes on the West Bank?  Yes, but not due to the levee breaks and certainly not on the scale seen on the news reports from the East Bank.  If you are looking for mass destruction, skip right over the West Bank - we don’t have it.

 

Determine what your ROI should be

If you have to ask, you don’t need to be in the business of investing in property in a city far from where you actually live.  Sorry, but I believe in tough love.

 

Do you have local contractors?

Properties that appeal to investors typically require a large amount of renovation work.  Unless you plan to move to the city temporarily to perform the work yourself, you need to have local contacts in the form of general contractors, electricians, plumbers, HVAC technicians and possibly even mold remediation and foundation leveling.  Remember that many of these professions are required to be licensed by the state of Louisiana before they do work that will pass a city inspection.

 

Are there potentially good investments on the West Bank?  Certainly.  There are also lots of local investors who are scooping up these properties, sometimes before they even make it into the MLS.  A local agent who knows the market is your best ally…provided you have done your homework ahead of time.

 

 

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When buying or selling a home on the West Bank of New Orleans or relocating to the New Orleans West Bank, you deserve local expertise and advice. Lisa Heindel provides full time, professional real estate services to buyers, sellers and military transferees in Algiers, Algiers Point, Belle Chasse, Gretna, Terrytown, Harvey, Marrero, Westwego and more.

              

Here’s the disclaimer part:  The opinions expressed here are strictly those of the author, but you are free to share yours in the comments.  All information is deemed reliable but not guaranteed.

Copyright 2008.  Lisa Heindel, All rights reserved.