Burn Flip

[Mke Wilburn]

Ok, here's my question to y'all, any and all feed back is appreciated.

I am looking to flip a house that has burned. The fire wasn't terrible but it is going to require removing and replacing about 25% of the roof plus everything from there on. In other words plumbing, electrical (it was aluminum wire, cause of fire) A/C, insulation, sheetrock, cabinets, flooring... you get the idea. 

I am a very experienced builder and remodeler so the larger project doesn't concern me.

My concern is two things,

Even though i can buy the house right,

#1 it is going to take a large cash injection to do the job

#2 how are buyers going to react to the fact that it has previously burned.

I have done burn jobs before but not as a flip.

Thoughts?

[Michael Lee]

Hello and welcome to this website!  Yes there is some concerns to have on this property.  Since I have been in the construction business for about 40 years I have a little input for that.  You have to feel good about your estimate.  Have a contigency line because there will be new areas of cost that you might have costs that you may have not considered.  You need to make the prospective buyers not ever has been a fire.  You do not have to tell them that there has been a fire there so make sure that is a part of the cost.   

I live in Dallas County Texas and I have been involved with fire reconstruction in a Townhomes building property that was bad enough to make the tenants move out.  Even in the attic there might be some work to do to make the smell go away. You should be fine doing that.  The newborns might know what you are doing but not the buyers.  Focus on doing income productive things.  

Have your daily routine fairly regular and tell your associates when you are available to talk to you on the phone.  Your goals should be high but attainable and where you read and see them everyday.  Your goals should be broken down into smaller chunks so you can feel good about succeeding more often.  You might want to schedule your days in the evening the night before.  Block out your schedule to do certain things on a daily basis.

Do stuff you have to do before lunch when your energy is higher.  Limit your newspaper reading and answering email to a time that works.  Track your progress on every thing.  Learn how to sysmetize some of your regular work so it can be followed by others.  Depending on your budget you can use "virtual" assistants cheaper who have the talent you need and in small routines where they can help you but not be overwhelmed.

One of the best ways to learn is by working and making mistakes.  Just learn by them and keep on trucking.  I have probably said enough that will hopefully help you and I give you my best wishes at whatever you do!