Macy Meinhardt, Voice and Perspective Staff Writer
Homeowners who experienced flooding are now dealing with one challenge after another. From daunting clean-up efforts to insurance claims, stable housing, and government funding. while balancing family responsibilities and work obligations.
Meanwhile, alleged “vulture investors” are cruising through hard-hit areas in southeast San Diego, offering homes at low prices to overwhelmed homeowners in exchange for washing their hands of real estate. It is reported that they are doing so.
“As a community, we stand behind the heartbreaking San Diego flood victims and the vulture groups shamelessly preying on their current vulnerability,” the nonpartisan civil advocacy group San Diego Rise Up said in a social media post. We must shine a light on it,” he wrote.
The post highlights a video taken by a volunteer on Beta Street that shows an altercation with a Southcrest neighborhood real estate agent.
“These people have lived here for at least three or four generations. It's difficult for someone to come to your house and say, 'I want your house,'” he said. Reinette Senum and SD Rise Up founder Melissa Grace.
According to witnesses, the agent responding in the video is identified as an employee of PorchLight Realty, a local regional real estate company serving San Diego. but, PorchLight Realty denies that the man in the video works for the company, even though he is wearing a company shirt.
What is disaster investing?
Home disaster investors seek to profit from opportunities arising from disasters that affect homes, such as floods, fires, and hurricanes. In most cases, they come days after the disaster and offer residents cash deals and contracts on the spot, ultimately offering to resell or flip the damaged homes for a higher profit. To do.
In addition, the areas reportedly hardest hit by flooding (Encanto, Shelltown, Southcrest, Mountain View) have also been identified as regional points: “Generations of underinvestment and injustice” have led to “increased vulnerability of affected communities.”as stated in This is a report from city staff. Arguably, these areas will become prime targets for what adversaries call “predatory activities.”
Anthony Sanfilippo, author of “The Rise of the Disaster Investor,'' says, “Uninsured property owners who are victims of these disasters are almost always reluctant to sell because the cost of rebuilding is prohibitive.'' I am forced to do so.”
But that's not the case with the Gomez family. Ruben Gomez, who lives at the end of Beta Street next to Southcrest Community Park, watched in horror as five feet of water engulfed his childhood home, which had been home to six generations of his family. Some of them had elderly parents.
“I was up to my chin in water, and before I could hang up, they called me and told me I was going to die,” Gomez said, recalling the moments before her parents were rescued by emergency services.
Miguel and Martha Gomez are respected members of the Southcrest community and have lived at Beta Street Residences for 60 years. After being rescued, the two were admitted to hospital, where they suffered from hypothermia. Additionally, his mother ingested a bacteria-filled flood into her lungs, causing a lung infection that has since required the assistance of an oxygen tank.
Ruben's parents have now returned from the hospital and are living with their son. Despite being sued for more than $150,000 in damages, the Gomez family maintains that the house has been in the family for six generations. Not for sale.
Meanwhile, a property owner two doors down from Gomez's that also suffered devastating water damage said the alleged real estate investor offered them $100,000 and prepared a contract on the spot. Ta. This offer stands out as significantly below market value, especially considering Redfin estimates the median listing price for homes in the Southcrest neighborhood to be around $700,000.
In an online post published by Laila Aziz, a prominent member of the South East Response Team, she wrote that developers are providing people with food and then offering free home appraisals.
“The sharks are out,” she writes. “Stay safe everyone, they are coming to your home. They are providing landowners with an avenue to reshape our communities,” he said in a social media post.
According to the report, wall street journal “tThe vulture's strategy is very simple. Investors approach affected homeowners with offers days after a tragedy, hand them pre-written contracts and try to reach an agreement on the spot. Once acquired, investors may turn around and resell the land at a higher price without making any repairs at all. ”
The video uploaded by SD Rise up shows exactly that practice scene.
“That’s just really insensitive.” Melissa Grace said.
In the video, a real estate agent answers:
“ I know it's insensitive, but at the same time I think there are people who own properties like this who can no longer live here. what are they going to do with it? ”
“So, what are you going to do about it?” she answered.
“We have a team that repairs properties and then rents them out. ”
The man goes on to say: “People need money and someone will be interested, whether it's us or the city. ”
” I work here and hear their heartbreaking stories, and it's really arrogant to come here like this,” said CEO and Founder Melissa Grace.
“The neighbors don't want you here,” Melissa Grace asserts.
“Thank you for your time.” the man in the video said as it neared the end.
With reports that more than 1,000 buildings, homes and businesses were affected by flooding, this type of real estate activity was reportedly already “on the rise” and seemed destined to happen.
The Wall Street Journal reported that “this practice is becoming increasingly common as natural disasters increase in the United States.” In 2023, the United States experienced 28 weather or climate disasters, each resulting in at least $1 billion in damages.
It will be a long road to recovery for those affected by the floods. But amid the turmoil, voices of defiance are growing, reflecting the sentiment that these areas are not a commodity to be bought and sold at a discount.
