The Profit Potential Behind Investing In Fire-Damaged Homes
According to one of America’s top fire-damage real estate investors, Fire Cash Buyers, there has always been potential profit earnings for investing in properties that have been damaged by fires. While the damage itself will reduce the home’s market value, its potential for flipping can often lead to increased profits.
Joel Efosa works for Fire Cash Buyers, and has written about the potential to take fire-damaged properties and flip them to sell at the same price as new properties.
Real estate investors also often have access to resources and organizations that specialize in the art of rehabbing homes for a large return on their initial investment. While any kind of property repair takes a decent amount of time and money, the potential to increase one’s earnings on the investment is possible with the right strategy.
Efosa stated that real estate investors are actually often looking for damaged rental properties for flipping purposes. This process often involves collaborating with local firefighters who would be the most likely to know of homes damaged by fire.
Firefighters also know the area’s they work in quite well, so they have a particular set of skills when it comes to guiding investors to properties with the best potential, and the ones with owners who are most likely to sell after a fire event.
Investors are also often connected with insurance agencies, adjusters, and other experts in the industry who have access to recent insurance claims and the homeowners who filed them. This can also aid in the process of finding homeowners who are most likely to want to sell their property to investors.
“Working closely with these insurance professionals can provide real estate investors with timely information on potential deals, allowing them to be at the forefront of new opportunities when they arise,” wrote Avi Stern for The Jerusalem Post.
“Ultimately, investing in a fire-damaged house can be an extremely lucrative endeavor for an eager real estate investor – as long as sellers of these damaged homes can be found.”
Real estate agents are generally the best resource for investors to use for this specific type of project. Not only do they have access to their client lists, but access to a large rolodex of properties categorized by their placement in the market; which would include properties damaged by fire.
Real estate agents also have access to property information that’s not often made public for the average investor/buyer to find. So when it comes to finding fire-damaged properties with the intent of flipping the space to resell for a large profit, it’s truly all about the team of individuals you have around you that can better help connect you to all the people you need to make the project happen.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at email@example.com.