Where will the dispossessed migrate to? What will this mean for real estate in the Houston area? Will surrounding markets, Austin, Dallas, NO gain? Opportunities to buy? Looking to start a general discussion.
EDIT: Sorry to anyone I offended; this was a poorly timed and worded question.
| +17 | Rate Hikes | 9 | 53m |
| +16 | Senior Living Modeling Help | 5 | 2d |
| +12 | Leaving Self-employment for Commercial Real Estate Brokerage | 2 | 5d |
| +9 | REPE Analyst Firm Advice | 1 | 2d |
| +8 | What are the best undergrad schools for placing in real estate finance? | 13 | 4h |
| +7 | KeyBank RE Underwriting | 7 | 1d |
| +3 | Anyone familiar with Migsun Nehru Place, Greater Noida? Thoughts on investing here? | 3 | 5d |
| +3 | Overtime approval | 6 | 6h |
| +3 | LIHTC Syndicator Comp | 1 | 2d |
| +3 | BGO REPE LDN | 1 | 2d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
bump
The shitty timing of this question and your blase attitudes towards people going through some pretty rough shit aside, I think areas of Houston that avoided the worst of the flooding are much more likely to see growth than Austin or Dallas. Doubt you see any long term changes. Houston is the fourth largest city in the US with a strong economy; there won't be a Katrina-level exodus like you saw in New Orleans.
People are hurting there; try not to be a fucking asshole.
What he said.
When would be a good time to ask this question? Years down the line when capital is no longer needed? As callous as looking for opportunity in others misfortune is, attempting to make a dollar through investment in the rebuilding is far more beneficial to the people of Houston than feigning concern for people you have never met. The hurricane happened; I cant change that, but I am trying to help in my own way, regardless of how it may benefit me. Anyway, you can spend your time admonishing strangers and conjuring up crocodile tears, but it isnt helping anyone.
A good time would be when the eye of a hurricane isn't over 6.6+ mm people. You trying to buy buildings in Houston is not an "investment in the rebuilding", and it has literally zero benefit to the people affected by the storm; an attempt to claim otherwise is pretty disingenuous. The way you phrased your question is makes you sound like a war profiteer. I get where your head is at, but asking a question like "how can I help these people" seems slightly more appropriate than "how can I make a buck off this hurricane". You can do what you like though; hope it works out.
As for me feigning concern... I have family there, dozens of friends, we own or manage 10+ properties there, and work with dozens of people there on a daily basis. This affects my family, friends, colleagues, and their families.
Anything to back this up? Recent job growth in Houston was abysmal.
https://www.bisnow.com/houston/news/multifamily/houston-albatross-to-ca…
*"One of the largest multifamily REITs in the U.S. is seeing rents drop to levels not seen since the last recession in Houston thanks to a double-whammy of lackluster job growth and a bunch of new apartments.
The Houston market — where Camden owns and operates about 25 properties — is expected to see historic property rent declines of up to 4% this year, said Camden president Keith Oden during a conference call with investment analysts this week. Giving Camden's various markets a letter grade, Oden ranked Houston a "D" as 10,000 new units continue to make the area a renters' market in light of lackluster new jobs. Still, there was a bright spot with incoming deliveries. “It does represent a 50% reduction from the 2016 deliveries,” Oden said. Houston's performance is among the historic lows for the REIT over the past 24 years, with Oden adding that those same-store rent hits typically occurred during recessionary periods of 2003 and 2010. *
Can't argue with the supply story and anemic rent and job growth. Would I be buying deals there now, maybe in the rights pocket, but generally no. My point was that long term I see Houston as being fine as its economy continues to diversify, and I don't see the storm as having any impact on that. Still projected to be the third largest city in the country relatively soon, despite short term headwinds. Hope that makes sense.
"5 minutes after the Challenger blew up, he's on the phone shorting NASA stock!"
Reminds me of the d-bags who shorted the market within minutes the planes flew into WTC. However, that was much worse.
What about forum favorite, Bobby Axelrod?!?! While this is an un-savory aspect of finance, I am not convinced it's unethical.
You realize that's a TV show, right?
If I ground lease to McDonald's, am I an obesity profiteer? Or does that not count because it's on such a long time span
Just playing devil's advocate: people CHOOSE to eat at mcdonalds. nobody chooses to have a hurricane wipe out their home.
Last I checked, folks have the choice where to live in the US, which includes areas that are prone to natural disasters and areas that aren't.
I'm not arguing that losing your home or lives of friends and family to a hurricane or any natural disaster for that matter isn't awful. My sympathies go out to the people who got caught up in this.
But if you're trying to draw a moral distinction between profiting off of others' short term misfortunes versus long term misfortunes, you'll have to do better than that.
How do you feel about tobacco stocks? Alcohol? How about insurance? Sure, insurance provides a safety net for people who get hit with unlucky events, but providers are still profiting from the fact that these misfortunes occur - maybe they should price policies to be a wash and just provide it as a social service?
Are you all serious about this ethical bullshit? Kinda dumb to consider that "somebody out there is hurt" unless you have some reputational risks imo. Ethics is by no means objective, fair or rational
.
I'd love to hear an actual answer to this question.
Hurricane Harvey: High or Low for the Oil Market (Originally Posted: 08/28/2017)
Hurricane Harvey made landfall in the Gulf region this past weekend. We send our thoughts and prayers to all those suffering from the disaster. It caused tremendous damage to the area and consequently has affected the oil sector. I think it will cause huge shocks to oil prices which could cause volatility to be through the roof. I am not sure exactly how the market will react.
What do you guys think the oil market will do in the next few days?
One monkey's opinion: it's tempting to assume that oil prices will spike with this forced reduction in production, but this potential gain in prices is mitigated by the closure of a lot of the refineries in the area (read: buyers of crude). So putting the two together, it feels like we'll have a decline in both supply and demand, and likely an overall negative effect for the sector.
Products are going to be up across the country as not only a lot of refining capacity is shut in but also because many pipeline such as Explorer and Magellan South have put a pause on operations. Colonial might have issues as well. This will send pretty large shocks through the markets.
Crude will most likely stay lower as well. Like the other guy said, this is bearish for crude itself due to the lack of refiners buying crude and despite some production being shut-in there has been much more refining capacity shut-in.
The real trade here isn't flat crude or products though. The crack spread and basis spreads are the place to focus the attention. Idiosyncratic shocks like this open up very wide spreads between products (crude and RBOB or crude and HO for example) and locations (Gulf coast and New York, Gulf Coast and Chicago, etc). Trading them as prices converge looks to be a potential trading opp.
Agree 100%. One word - Colonial pipeline
Supply and Demand for CL down until operations of refineries / drills resume, but product demand will stay constant with less supply; expect to see an increase in gas(oline) and other refined product prices over the next couple months until Texas returns to normal (not sure where inventories are at).
Kind of F'ed up what you're looking to do, but why don't you look at flood maps and elevation maps? You could probably get a pretty clear picture of which parts of town are least susceptible to flooding.
There is a reason the town grew and migrated West, and not East. http://en-us.topographic-map.com/places/Houston-142516/
However, there are still pockets of areas in the NW that have flooded significantly.
To adress OP's question, I don't think people will leave Houston because of this so unless you are in the rehab construction business there's not much out of this for you.
A buddy of mine in West Texas was bouncing around the idea of taking leftover oilfield doghouses from man camps and setting them up on land he has in Houston, but I am not sure if they would be approved by FEMA or how the whole process with FEMA works. I am sure other things will present themselves in the upcoming weeks.
Esse aut quia ipsum nihil voluptatum sed. Natus eos perferendis aut et. Sed voluptatem minima eius nihil eveniet. Magni est minima a labore quos facere necessitatibus eos.
Et reiciendis ullam asperiores. Nostrum omnis error repellat.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Nostrum ipsum est voluptates ullam esse. Modi molestiae rerum rerum numquam accusantium nemo. Qui at nesciunt accusantium libero. Nam magnam alias pariatur. Dolores esse ut et dicta nobis in quae.
Cupiditate in reiciendis similique repellat qui. Magni qui eveniet nemo accusantium ut itaque quia. Velit perferendis illo dignissimos itaque. Laudantium deleniti quaerat quaerat perspiciatis. Culpa necessitatibus nobis deserunt deserunt. Animi ratione illum et.
Asperiores consectetur est ut autem id culpa. Ex ullam est iure quas. Et nihil sint non necessitatibus nihil. Repellendus quasi dignissimos vitae quia. Nisi exercitationem illo ad consequuntur.
Accusamus porro consequatur labore eaque. Quibusdam dolore nobis inventore fuga enim quae. Nemo rem eos eius possimus molestiae. Rerum quia rerum facilis ut a voluptatum ut.