Posted by PBoone on June 07, 1999 at 12:24:43:
Well you are right… A lot of money can be made in fire damaged properties. First understand when the fire occured the owner probably had insurance in the amount of replacement for the house. with that in mind the owner may be willing to deal because they have already received cash for the house.
On fire damaged properties we usually start at 30-40% of FMV offers then a wholesale flip usually works.
Pat
Fire-damaged properties…Advice Needed! - Posted by Rodney (AZ)
Posted by Rodney (AZ) on June 06, 1999 at 19:52:48:
In the first of my weekly Saturday drives around neighborhoods to look for properties, I stumbled across a fire-damaged 2 story home. This home (according to Yahoo) last sold for $136,000 in 1993, and it is surrounded by properties that traded recently in the $160-$180K realm (again, according to Yahoo). There was no Police tape around the property, and no signs posted. The home is obviously unoccupied, and damage seems to be confined to the back of the building on the second floor. While not real obvious from the street, the part that is damaged is BAD. But, that is my decidedly ignorant opinion.
I am totally unskilled in this aspect of the biz. But, I have heard of great profits that have arisen from fire-damaged properties. First of all, I have no desire to rehab it. I am thinking only about wholesale. It seems that there should be plenty of profit for everybody with the neighborhood values being what they are. Am I all wet? (No pun intended!) If there is a potential deal here, WHAT DO I DO NOW? How do I find out who owns it, what steps do I take to determine an offer, etc. etc. etc.?
Should I pass or play? Even some education on the subject is worthwhile to me, so please respond with your opinions!
Thanks!
Rodney