First Fire Damage Property

Real Estate Deal Analysis & Advice
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First Fire Damage Property

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Real Estate Investor · Ladson, SC · Member since 2013 · 6 posts · 0 votes

Hey Everyone,
I am nervous about a fire damage property I have under contract. I put it on the market for 27K and thought it was a fair price knowing that the ARV is 125,000. The property is located in Goose Creek, South Carolina. Some individuals know that the area is a great location knowing that the property is located 2mins away from the navy base. I sent the property to my buyer's list and no one respond. So I do not know what the problem is. This is my first fire damage property. I have a feeling that no one on my buyer's list is interested in fire damaged property. I am not sure. I really feel like it is a great investment opportunity. Any advice on what I should do? I know I need a better buyers list. I just feel like every property is a deal as long as you get the property under contract for a great price.

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Tyler H.
Real Estate Agent · Fort Worth, TX · Member since 2010 · 208 posts · 70 votes
13y

Contact some solid local building contractors, especially those active in your local REI groups. They may be interested, or will know other contractors that may be interested. Make sure you get your rehab repair numbers correct on these deals.

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  • David NilesBusiness Member
    Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
    13y

    There is a lot of extra work involved with fire damage and the words alone scare most people away. If its not done right, it can look like a million bucks but still stink like a campfire.
    Try working craigslist and your local REI club.

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  • Tyler H.
    Real Estate Agent · Fort Worth, TX · Member since 2010 · 208 posts · 70 votes
    13y

    Contact some solid local building contractors, especially those active in your local REI groups. They may be interested, or will know other contractors that may be interested. Make sure you get your rehab repair numbers correct on these deals.

    1Reply
  • Account Closed
    OP
    Real Estate Investor · Ladson, SC · Member since 2013 · 6 posts · 0 votes
    13y

    I want to take the time out to thank you both for answering my question.

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  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    13y

    I agree - try local developer and local real estate club
    Regardless, Montivia welcome to biggerpockets nation

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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    13y

    It's definitely one that needs someone that can look at the damage, and understand what needs to be done. NOT for novice investors. Contact contractors in the area. Put an ad on Craigslist "ATTENTION CONTRACTORS!" Good luck.

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  • Shawn Thom
    Investor · McKinney, TX · Member since 2012 · 588 posts · 224 votes
    13y

    One thing that may help is to find a fire contractor and have him give you a bid for rehab. use that in your marketing. That way someone less experienced in fire damage properties will possibly consider it if you have a contractor already lined up.

    Don't use a contractor that doesn't regularly do fire damage homes.

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  • Account Closed
    OP
    Real Estate Investor · Ladson, SC · Member since 2013 · 6 posts · 0 votes
    13y

    Thanks Everyone for your post, great information that I can use.

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  • Victor Belman
    Ontario, CA · Member since 2013 · 48 posts · 2 votes
    13y

    Fire-damaged homes offer great profit potential but also pose special concerns and hidden risks for investors. Contact experienced investors and renovators for these opportunities that have few competitors.

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  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    13y

    I would market it to fire restoration companies that are local.

    I remember a foundation company where the owner flipped only about 6 properties a year. He couldn't do it full time because of his foundation company being busy. He bought the houses really cheap from sellers or the bank because most of the others didn't want it.

    He could do the foundation work for just materials and a fraction of labor with his company for cheap compared to other flippers and make really fat profits of 50k or more.

    So that's the advantage in that you find a company that specializes in the problem your property has and to them they can rehab and make the numbers work where others just see risk.

    All the best.

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  • Pete T.
    Real estate investor · Las Vegas · Member since 2013 · 798 posts · 171 votes
    12y

    @Account Closed how did it turn out>

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