Real Estate Opportunities from Natural Disasters

While reading a study out of the University of Chicago entitled "Payday Lenders: Heroes or Villains?", I was struck by the following statistical fact - foreclosures rise in communities faced by a natural disaster by 4.5 per 1,000 homes. Now this is obviously a bad thing, people getting foreclosed upon, but its also a fantastic opportunity for real estate investors. If you recall the TV pictures of the ski towns in Vermont and upstate New York following Hurricane Irene, its clear a natural disaster struck these areas very hard.

Now, I wonder would if this statistic for foreclosures after a natural disaster would be even higher if the community affected relied upon seasonal rental income to sustain. Meaning, in a ski town without a ski lodge wouldn't less people rent a ski house, causing even more foreclosures or distressed homeowners than the 4.5 per 1,000.

Regardless, the team at Lieb at Law always lives by the motto "don't dwell on the past but enhance the future". So, speaking of enhancing, all of you real estate investors out there should be focusing on seizing the opportunity of the Hurricane Irene natural disaster. Yes, no one wants a storm, a fire or a flood, but we cannot control these occurrences. Yet, we can control how we respond. I suggest responding with investment in the hardest hit towns. Seize the opportunity. Now go make a fortune.