LAHAINA, Hawaii (NewsNation) — Hawaii fire victims say real estate investors are trying to capitalize on the crisis, contacting homeowners and offering to buy their land while thousands of people remain unaccounted for.
Real estate developer Uri Man called the practice “disgusting,” likening it to kicking Hawaii natives while they’re down.
“Can you imagine people who lost their homes…there are still bodies being pulled out of these homes,” he said. “There are still bodies being pulled out of water outside of Maui, and you suddenly get a call or a message on Facebook: ‘We want to buy your property.’”
Hawaii has the most expensive cost of living of any state in the United States, and people already were struggling to find affordable housing, Man said.
“This storm that just came in it kind of supercharged the problem because it wiped out over 2,000 housing units, and these people have nowhere to go,” Man said.
But developers saw an opportunity to scam people out of their property, offering all-cash offers for their land with a quick-closing and hassle-free process.
“I met someone personally, that said they were approached at their home and asked if they wanted to sell it and went to the neighbor’s house and everybody’s house on the corner,” Lahaina native Uilani Kapu said.
Now, state leaders are warning that this could all be a setup allowing developers to buy low and sell high.
“They will offer you 100 grand more for your burnt land is what I’m hearing and they’re calling from all over the place,” realtor Ashley Correa said. “As a realtor, I can’t even think about being so desperate to need to call victims and so insensitive to do that.”
Hawaii Gov. Josh Green announced plans to stop people from trying to “steal” land, vowing to protect homeowners. Green said he may even instruct the state attorney general to impose a moratorium on home sales in affected areas.
“My intention from start to finish is to make sure that no one is victimized from a land grab,” Green said.
While the deals may seem attractive at first, Man says Hawaiians should keep predators at bay to avoid selling their land for lower than its value.
“It’s a free market. People should be able to sell their property if they want to,” Man said. “The most important thing that we can do is communicate about these predatory practices here on television to make sure people know they have options.”
The Hawaii Real Estate Commission has also warned about predatory land developers, saying any exploitative acts will be handled to the full extent of the law. Green said lawyers will be available at response centers to provide free advice to people impacted by the wildfire so they can avoid being taken advantage of.