Is There Money In Rebuilding New Orleans?

In the states surrounding the devastation, many folks are already being mobilized for short term “clean up” jobs.

Many are considering the future rebuilding of New Orleans - especially with politicians lining up to throw our tax money at the problems there - as a potential bonanza for the construction trades.

I’m including this because many contractors are “home based” as are many who would like to deal in real estate.

The answer is that the “money” may be at various levels… it depends on your risk tolerance and ability to absorb catastrophic loss…

Here’s Robert Abalos’ take on the rebuilding of New Orleans from his ezine…

The news is all awash with stories about how the Gulf Coast and especially New Orleans are going to be redeveloped after Katrina’s destruction.

Don’t believe them.

It’s way too early to say how the New Orleans or Biloxi or anywhere else in that area is going to look in the years ahead so direct investment there is highly speculative. Not to say such speculation won’t be profitable. It likely will be. But it is also very risky, almost reckless, to invest in a development scheme not even on the drawing boards yet.

Let’s be honest. The Gulf Coast and especially the city of New Orleans have been mired in political corruption and civic government incompetence for decades. The poor evacuation planning we witnessed on TV at the Convention Center and the Super Dome is only the latest example of how ineptly managed the area was for both economic growth and real estate develoment. Extreme poverty, police corruption, wide racial and class divisions, and political graft are all evidence of what existed pre-Katrina. Have the waters really washed all these problems away?

Here are some articles explaining the unsavory political climate in New Orleans and other parts of the Gulf Coast. None paint a pretty picture of an area planning for massive new real estate development:

http://snipurl.com/i4mw

…

Buying land for redeveloment right now in the wake of Katrina and Rita is pure speculation. Many will make fortunes, many will lose their shirts. I prefer to let others do the heavy lifting and develop a trend so I can jump onto it. It’s the pioneers who take the arrows, after all. Many of those very pioneers survive to be extremely wealthy real estate investors while others get buried in unmarked graves. I prefer to be in the second wave of investors where the rules to the game are clear and those shooting arrows at the pioneers
have sold out and put their bows away.

Robert J. Abalos, Esq.
www.investinginland.com

SO… Contractors and subcontractors will be able to make money. The investors who jump in now may just be jumping in over their heads.