Fire Damaged Properties - Do They Make $$$?

davehays profile photo

Hello all,

I had a question about fire damaged properties, which is a general term.

If someone has the proper insurance, and there house burns, they get insurance money I assume to compensate them for the amount of loss they endured.

Now, do the best fire damaged property deals result when the damage is not so extensive and it is salvgable, while at the same time, it was burned badly enough that people have to leave?

I am trying to understand why someone would sell their fire damaged property. What is their motivation? to get money above and beyond the insurance payment, which may or may not cover the mortgage that was on the house? aside from evaluating the condition of the house, are there other caveats with these deals? I am trying to wholesale some, when I find them.

Just curious, thanks in advance, Dave

Comments(2)

  • yipes17th January, 2004

    I flipped a few fire damaged houses. One in particular was a 3 bd 1 bath house that was completely burnt to a crisp. The lady collected insurance money from her claim and moved into an apartment. She responded to my we buy houses ad in the daily newspaper and sold her house to me for $2000 cash. I then got it under contract and sold my contract for $4,000 cash. This isn't the biggest deal in the world, but its just to say and prove that you can make good money off of burnt houses. Hope I helped you out some.

    Happy investing to all

  • Bruce19th January, 2004

    Hey,

    I have purchased one burnt house and it was an REO.

    Basically, it does take much fire damage to make a house unlivable (legally). A small fire in the basement might destroy the fuse/breaker box, so now you have to repair/upgrade the system before someone can live there. They try to sell the house, but few people buy burnt house. So they stop making the mortgage payments and the bank takes the house.

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