I work for a roofing company in DFW, and I would like some input on my proposed strategy.
I am thinking of working with sellers to file insurance claims to get their roofs replaced prior to closing. The investor would pay for the deductible, and we would pay the homeowner a small bonus for having our yard sign out for a month. This way, the homeowner actually makes a little money (though the closing is delayed), and the investor pays only for the deductible rather than a whole roof, gets a higher quality roof upgrade and a transferable warranty. Seems like a win all ways.
Does anyone have any experience doing this? I was talking to an investor recently and he told me that he is looking for a roofer to help him do this, and I gave him my card. What difficulties can occur with closing, negotiating with the seller, and the insurance claim process?
@Greg Carr fraudulent claims kinda comes to mind. Insurance companies are catching on to these schemes.
What would be the supposed insurable event that damaged the roof, old age?
@Wayne Brooks Well, they would have to have been in a storm within the past year, of course. If there's no storm damage, there is no point even filing a claim. There are quite a few storm areas in my city that still have been neglected by the homeowners. I do this with the storm maps we have of DFW.
I definitely should have mentioned that in my original post! Thanks for mentioning that, otherwise people would get the wrong idea right off the bat. If you don't live in these cities, you obviously would be unaware of the storms.
In terms of fraudulent claims, I'm actually not sure how that is even possible, considering an adjuster has to approve the claim anyway.
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