What's the concern or FIRE DAMAGE?

Question

SO I have a property of interest, but having a lot of kickback / disinterest due to fire damage specifically. I have many GC's who have placed bids on conducting a full rehab / even new build, and the area is in a great neighborhood with $400k homes across the front yard. It is also shouldering an elementary school as well. All the perks, but having trouble due to the fire damage!

Candice McGuire · Answer

Do you know a lender that will fund fire damaged rehabs?

Nicolas Dalton Ward · Answer

Mike, this subject property has been totally enflamed. Debris from second floor piled up on the first floor, almost all exterior was melted away and would definitely call for a feasibility study. I believe it's arguably a tear down.

Nicolas Dalton Ward · Answer

John, thank you for the insight! This makes more sense as most of my buyers have been. hard money.

Mike Klarman · Answer

I've done a fire damage deal.  There's a feasibility study that needs to be done.  Also, you'll need an architect and engineer inspections to make sure the structure is safe.  All depends on the extent of the damage.  If it is mostly smoke damage to the interior it will be ok, but if the roof caught fire and burned away that's a whole different ball game.

John O'Leary · Answer

If buyers require financing, it could present challenges if you're the listing agent. Many hard money lenders (HMLs) tend to avoid properties with significant fire damage, unless the damage is minor or limited to a small area.