Hurricane Sandy Delays Economic Recovery

Mike Wolf New York NasdaqGreetings from sunny Las Vegas, where I recently arrived from New York. I missed the hurricane and it’s hard to believe looking at the images on the news that the devastation hit those very places I was just visiting.
 So what kind of impact will this megastorm have on the economy? As the millions of people affected by this tragic event continue to sit in darkness because the power is out, the speculation has already started about how big the losses will be. According to some sources, losses are expected to top $25 billion. The stock markets being closed for a significant period of time makes it hard to predict what will happen to prices once they are up and running.
Overall, economists are predicting that the loss of business and property will come close to evening out by the money that will go into rebuilding and recovery efforts. What the storm has done is delay the recovery that the U.S. has been experiencing. An event such as this disrupts the balance of the economy by temporarily cancelling out some jobs because of damage, while creating jobs for rebuilding. Some businesses and sectors (think Home Depot) will benefit, while others will suffer. It will create opportunities and for those who jump on the bandwagon early, they could be good ones. Those of you who have been following me for a while know that my real estate investing strategy does not involve speculation and gambling. I look for solid growth markets with long term opportunities, rather than quick cash grabs that may be risky. If I did get involved in the inevitable opportunities created in real estate on the eastern coast, it would be to help in the recovery efforts. My main goal would be to create a win-win situation by helping people get back on their feet, while simultaneously creating a profit for my investors. I was involved in these types of projects in New Orleans and am still working in that market after Hurricane Isaac. To find out more about how I evaluate a market for the best real estate investing opportunities, check out the replay of my recent webinar

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89 comments

  1. Farhan

    A very good question and I have a very good anwser for you. As an investor I have had to go it alone and sell houses myself, most of the time. I am not a pushy guy. I have had to use agents from time to time and even then the house has sold itself. There are 2 basic aspects to getting a home sold1st. Make the house look right. Before I put any house on the market I understand the 3 most important things about preparing a house for sale, and here they are in the order of priority.1. Curb Appeal2. Kitchens3. Bath roomsI have found that I spend my time and resources making those areas as nice as I can and that is the first step in the sales process. This is at least 50% of the sales process when this is done correctly the house sells quickly when its not it takes much longer.Now you as an agent can’t control that part completely as they won’t be your houses to fix up but the part you can control which houses you show your client. Learn very specifics about what your client is looking for spend the time to really understand what they want listen to the female primarily as she will be the driving decision for the house. Once you have listed your clients wants in detail go scout the properties. find the best homes for them based on their description. Keep them in their price range and find them the best and the other half of your job is done. It is always recommended to show them one house that is a little different from what they want as it will cement in their minds what they want and help them more easily find what they are looking for.The other half of the sales process does require some sales skills on your part. Assisting them in making an offer. Most people don t know what to offer or how to write it. If they like the house this process goes much easier, but you will still have to work with them a bit. The real estate sales game is much more a people relations business than it is a sales business. I know many agents that aren’t super aggressive but they are just really good with people and are quite successful.So I would say in closing that 60% of the sale for an agent is knowing how to read customers and find them what they want 30% is actual sales and 20% is the work of finding the deals for the client ahead of time so you are only showing them what they want.

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