Frist Deal - Sweet Deal!!!? - Posted by Big Dog

Posted by John (Rome) on July 03, 2003 at 24:44:58:

how true…but I simply meant working with numbers written on paper to one’s best knowledge…not the “this should cost this and this should cost that” off the top of one’s head…(something I’ve been guilty of myself in the past…) especially because it’s fire damage…

anycase seems you have a nice payday ahead…


Frist Deal - Sweet Deal!!!? - Posted by Big Dog

Posted by Big Dog on July 02, 2003 at 15:11:13:

I put a fire damaged property under contract yesterday.

Agreed upon Purchase price: $18,000
Assessed value: $26,800
ARV: $110,000

I am looking to flip this property for $30,000. The fire damage is not that bad. The fire started in the basement, the first floor needs to be gutted, second floor is 50% damaged, third floor and the roof is in good condition.

This is my first deal, any advice would be greatly appreciated.

Big Dog

Re: Frist Deal - Sweet Deal!!!? - Posted by RichV(FL)

Posted by RichV(FL) on July 02, 2003 at 19:27:55:

Hey Bigdog,

I agree with Ron. It sounds like a winner. But why not try to get 3 estimates from some fire/water damage contractors. You the guys that do the big stuff. Not a local handyman.

You may come out with some better numbers on this one and make yourself a little extra cash. Heck its worth a shot. Alot of rehab people love grab fire damaged properties.

Either way it sounds like a good deal.

Great Success,


don’t do it. - Posted by Ronald * Starr(in No CA)

Posted by Ronald * Starr(in No CA) on July 02, 2003 at 16:13:29:

Big Dog-----------

Whoa there. Don’t do it yet. Stop and do some more research.

That sounds like a good deal. However, I’m wondering if you might be able to sell it for a higher price than you have indicated.

Get some fire damage contractors in do give you some estimates. Their cost will be higher than an investor would have to pay to get the job done. Maybe 150 to 200% of the investor’s cost, I’d guess.

Then work backward from as repaired value and see what kind of price makes sense.

Congratuations, that sounds like a terrific purchase to me.

Good InvestingRon Starr**

Re: Frist Deal - Sweet Deal!!!? - Posted by John (Rome)

Posted by John (Rome) on July 02, 2003 at 15:36:22:

actual cost of repairs? not estimated.

Actual cost of repairs? - Posted by Gerald-DC

Posted by Gerald-DC on July 02, 2003 at 19:20:24:

I don’t think even the most expereinced rehabber on this site can give actual repair numbers until the rehab is completed. We can only estimate based upon realistic numbers, factor in a oops factor and hope our contractor’s are on their A game.

If you can look at a rehab project and determine the actual costs and the rehab in fact turns out to be that cost, time after time, than you should be writing courses. I would buy it.

Re: Actual cost of repairs? - Posted by dell-ohio

Posted by dell-ohio on July 02, 2003 at 22:45:29:

well aint that the truth …

We have purchased 11 properties since Janurary. Many of out “actual” repair numbers have been way off.

Like the house we discovered with serious termite infestation. This was not noticed during the inspection, because you couldnt get under this section for floor. We removed some spongey floring to discover a couple joists, totally collapsed,(eaten away by termites) and a the rest in various states of consumption.

We removed the drywall and the studs had fared about the same.

Anither; fourteen unit apartment building with 12,500 sq ft retail space. Actual quote from contractor, 70,000, ran into state inspection issues and the sprinkler system alone is another 38,000.

We are not hurting on bny of these projects because we bought right.