How can i help a flooded homeowner wanting to exit?

[Stefon Bostick]

Good Evening guys, im down here in Houston, Texas and really thinking of ways i can help homeowners who have been flooded for the first time and wanting to break away from their homes in search of a new beginning. I've gotten a couple of people who need my help but wanted to get some advice from peers. Im sure everyone is aware of the devastation down in our area and it has in turn caused several people to never want to go through that again. I've gotten addresses, ran comps, come up with my MAO, etc., and am all ready to go but have held off on pulling the trigger because im not quite sure how to handle a couple of complicated situations:

1.  Both homeowners have filed claims on the damage and are expecting lump sum payments.

2.  The homeowners are wanting to get out of the houses before the insurance money comes and some are under the impression that they can pocket the insurance money and give me the house. (Im not an insurance agent but im almost kinda sure that is not possible but this is why im asking).

With that said, im really needing some advice on how to handle these types of wrenches in the process. My questions here are: should i let the homeowner receive the money and get the house back to its previous "before storm" state before making my MAO? Is it even possible to make a very low MAO with the cost of flood repairs incorporated (while the owners have insurance money on the way)? Or am i missing something and these are bad deals all together?

Looking forward to hearing from the BP Family on this one. There are alot of tricky situations like this on the horizon given the circumstances.

Thanks in Advance!