WHAT TO DO WITH A FIRE DAMAGED HOUSE

[Steve Pratt]

I am a real estate agent and investor in the Raleigh area. I recently had a friend ask me what I could do with his property that suffered extensive fire damage (no insurance). I had a professional fire rehab company look at the house, and they stated that they wouldn't touch it due to the damage to the trusses and rafters.

My instinct is to have the property appraised and list it as is. Has anyone dealt with a similar situation? Is there a way to turn this into a profitable investment?

[Jeremy VanDelinder]

I flip fire-damaged properties and own a fire damage restoration company. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). Unless you are rather experienced with this type of damage, it may be hard for your to tell the extent of damage. In the absence of an insurance settlement, I would usually recommend getting a restoration contractor to look at it, but it sounds like you have already done that.

I don't understand exactly what is meant by the fact that the restoration company "won't touch it." If they are a restoration company that is what they do. So either this means either 1) its beyond their ability or 2) what they really mean is it's a tear-down. 

If it does turn out to be a tear-down, remember to back the cost of demolition out of your max offer. It may cost you significantly to get it to buildable condition. 

I'd be happy to look at pictures and answer any other questions you may have.