ok I have a property in NC I want to put under contract but everyone is saying make sure the numbers are right. Which of course I understand but do people actually buy fire damaged properties, it seems like untouched territory especially in Hope Mills/Fayetteville where I’m from. I’ve never seen a property rehab a fire damage house.Does the normal general contractor come out and draw up an estimate for repairs or is there a special person? If it’s a complete gut and start over how do you calculate that? So many questions 😂
Many investors who don't specialize in fire damage tend to stay away because it is more than just cosmetic and smoke damage can penetrate more than expected. If you can find someone who specializes in fire rehabs you might try it otherwise you might have trouble finding a buyer for the right price. Fire will also mess up a lot of rehab estimates because of hidden damage.
I would agree with Aaron, I think your best bet is to find a flipper who has done fire damaged properties in the past and has experience with them. It can be hard estimating rehab costs for a normal home, I'm guessing fire damage increases that difficulty even more. I'm sure there is someone out there though that does work on these projects you just have to find them!
I have bought several of these. Everything is dependent on how extensive the damage is and whether or not it is structural. If its a kitchen fire, not a big deal. If it is getting into the structure of the building and there is extensive smoke and water damage throughout, then the price would need to reflect that.
My background is in emergency services (including fire department) and I've done victims' services for a Fire Department for a number of years. My last flip was a fire-damaged house, and I'm negotiating another one right now.Even with that background, it can still be challenging to get good numbers. The biggest key--as has been mentioned above--is getting either a contractor or flipper who has done it in the past. I promise, there are about 100 things you haven't thought about (and probably won't until you get bit by it.) I'm also following this post closely. I'm working to make this my "niche."
@Jeremy VanDelinder - how have things turned out with your excursion into purchasing fire damaged properties? I am curious about it and thought you may have some insight.
I think it's difficult to find customer of a fired out property . My own warehouse was set on fire in Manchester in 2014, so I tired to sell it out but I couldn't find out a buyer .
Today I have built it somehow and making a good fortune from it .
@Guillermo Kennedy , Funny you should ask. It's quite going well. I've gotten a couple since then. However the BIG change is that I've also started a fire RESTORATION company since then. We are pretty new and it is a very busy time, but we are getting things cranked up--its very exciting. This puts us in front of more homeowners and we have the unique advantage that we can offer them to either restore the property or purchase it. Beyond that, when we do purchase a property we will be able to restore it more economically because of having the business in place.
Exciting times-- good to hear from you.
@Jeremy VanDelinder Wow! Now that sounds exciting and a pretty good business/investing strategy to boot. Kudos to making it happen.
May I reach out if I have any future questions on this subject as you seem to be a subject matter expert?
@Guillermo Kennedy Absolutely! Glad to help any way I can.