Buying a fire damaged property
Howdy All!
I am fairly new to the BP community, but am eager to become an active member.
Here is the situation....
I am a licensed RE broker in the state of Colorado. I was chatting with my roofing guy (who owns a Fire, Hail and Flood restoration company) about buying fire damaged properties, fixing them up and flipping them.
I know most of the logistics in regards to what needs to occur for the future buyer to get financing, insurance etc... The guy I would partner with knows all about permitting and the restoration process... What we do not know is how to go about actually acquiring these properties.
Here is an example: Home catches on fire and causes total loss, owner files a insurance claim, insurance pays lien holder and owner. Owner decides to not move back into the home and move on. What happens to the house? How do we go about finding/buying these properties?
Thank you so much for any insight!
Mark
Most Popular Reply
@Mark Risley I listed and sold this house last year. It was a rental. Tenants collected on their rental insurance and moved on. Owner collected on their property insurance - and used some of the proceeds to pay off the mortgage. Then they listed with me and I sold it at "fire sale" price. They pocketed that money and moved on. As long as repairs are done to code there should be no problem obtaining appropriate insurance. The fact that a fire occurred should be disclosed. I would advise that detailed before and after pictures be taken before walls are closed, etc. so that buyers and inspectors can see that it was done right.