All Forum Posts by: Jeremy VanDelinder

Good for you @Scott Trench

I flip fire-damaged properties and own a restoration company which specializes in fire damage. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). Unless you are rather experienced with this type of damage, it may be hard for you to tell the extent of damage. The place to start is by asking the seller what the insurance company decision is—if they will share that info, that might tell you some of what you need to know.

The challenge with fire damaged properties is that there is more than meets the eye. For example, often fire damage is water damage--they put the red stuff out with wet stuff. Unmitigated water damage becomes mold damage and and there is the potential of extensive smoke damage in the same airspace. So even elements that don’t appear damaged can be contaminated. Also, ODOR is a huge issue. If the odor is not properly mitigated that will cause ongoing problems.

I would recommend you find a fire restoration company/contractor to walk the property with you and give you a good understanding as to what needs to be done. There are many things that could be overlooked as part of the renovation on fire-damaged properties.

Please let me know if I can be of any help.

 It occurs a fair amount--maybe 20% of the time in my experience. They insured would not collect the full replacement settlement, but some percentage of it and then they can do what they want with the property.

I flip fire-damaged properties and own a restoration company which specializes in fire damage. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). However, unless you are rather experienced, there is a steep learning curve. (I have done very well, but I have also had properties I've lost money on because of surprises that come up.)

No, insurance companies do not own properties. You have to purchase directly from owners who have experienced a loss. As it is a very specialized niche, there really isn't a single source for these properties--you have to have an in to this owners.

Background: I flip fire-damaged houses and own a restoration company. Have dealt with this many times. 

 I am sorry you are dealing with this. 

Your carrier will try to get you to claim it from your neighbor's policy; your neighbor's adjuster will try to convince you to do it through your insurance company. There are pros and cons, both ways, but my recommendation is make a claim with your insurance carrier. This is called a "subrogate loss"

Hire a quality restoration company and trust them to do the work and bill it properly. Do not allow the insurance carrier to bring in "their guy" (preferred vendor). Sometimes preferred vendors are good; sometimes they just do the insurance company's bidding instead of looking out for the customer. 

Let me know if I can help by answering any questions.

 Repairs Unlimited is a solid company. You would do well to consider them. Please note my cautions above. 

I flip fire-damaged properties and own a restoration company which specializes in fire damage. It can be a big undertaking, although there can be profit in it IF the numbers are right and IF you have done your homework to know what you are getting into (both big “IFs”). Unless you are rather experienced with this type of damage, it may be hard for you to tell the extent of damage. 

You are asking about a GC with good references (I assume you mean quality work) and "reasonable" prices (by which, I assume you mean low prices--do you have experience with fire damage? How will you know what is 'reasonable' for proper mitigation?). Which do you want--a professional that knows what they are doing or low prices? Proper fire/smoke mitigation requires specialized knowledge, certifications and equipment. Consider the fact that mitigation companies carry significant overhead and do insurance work at retail prices most of the time. 

If someone says they can do it significantly lower than the others, there is probably a reason. 

Let me know if I can help you in any way.

Have you asked for a supervisor at the mortgage company?

You can also ask an attorney to draw up a "partial release of lien" and see if that satisfies the mortgage company.

FWIW--mortgage companies can be very difficult (and irrational by virtue of their convoluted bureaucracy) on these matters. I own a restoration company and we have resorted to a third-party to handle these exact situations.

I flip fire damage homes and own a restoration company. We spend a lot of time fighting with insurance carriers and it just keeps getting worse. 

Glad you had a good outcome, but, yes--it is important to remember your carrier may not be "on your side" "like a good neighbor" and you may not be "in good hands" like you think. Protect your own interests!

@Krissi Miramontes is absolutely right! There might be a good opportunity there if the numbers are right. This is my "bread and butter" so let me know if you need any guidance through that process.