When investing in a property damaged by a fire, basically three types of damage will be evaluated. The first one is what most people see when they see real estate burned out. This damage seems to be extensive to the extent that it can not be repaired. It rarely enters when there is no roof, and the walls are not structurally healthy.
In fact, most damage is much less mild and falls into one of the following three categories.
1. There are slight soot and smoke damage in the majority of the premises, and one room, usually a kitchen or bedroom, contains significant damage. These usually start when the pan of the stove overheats and seizes the fire. The generated smoke is electrostatically charged and adheres to everything including the wall and ceiling. This type of damage is very simple and should cost 15 to 20 dollars per square foot over the entire residential area of the real estate.
2. Fire was stabbed in the ceiling and the truss was burned. However, the roof does not penetrate or it is burning slightly. In some cases, the roof is opened by firefighters. Usually, some of the rooms are largely broken. This type of damage must be in the range of 20 to 35 dollars per square foot.
3. The interior is greatly hurt, the roof burns out completely in various places. This is the most widespread type of damage and can be implemented in the range of 40 to 70 dollars over 1 square feet. Please pay attention to these characteristics so that the contractor can start, and he is underestimating repair and necessary effort, so I am in trouble finishing the work.
A more accurate estimate of these repair expenses should have been obtained from local contractors engaged in the business to rebuild baked real estate. You can sell your transactions by holding a phone number as a contact in your buyer's list and asking an investor to deal with these subscribers.
The opportunity to exist for property that suffered more damage is to place them under the purchase and sale agreement or to sign an option contract with the seller. Then sell them to the local contractor and buyer list of companies repairing the damage of smoke. Please consider buying these real estate at about 10% of ARV (postpaid value) and selling it as "wholesale real estate" paid twice as wholesale real estate.
In summary, there is a great potential to sell wholesale baked goods. Do not worry about the state of the property, just contract and wholesale to investors who know what they are doing. The property of Category 1 is labor intensive with restoration work, but because it requires only the minimum material required, the possibility is very high. Housing owners generally pay money for insurance premiums from insurance companies and sell their homes are essentially monetary. Since you do not risk other than deposit with the homeowner, try some baked items to make sure it is easy to get and sell.
