All Forum Posts by: Jeremy VanDelinder

I flip fire-damaged properties and own a restoration company which specializes in fire damage. 

Unfortunately, some times the insurance settlement can take a long time--especially when the carrier is fighting. I don't know that is what is happening, but its one possible explanation. The other possibility is that they have taken the settlement and abandoned the property. 

So, yes, if you are in a city jurisdiction, I would call in a complaint to Code Enforcement who will in turn send a letter to the property owner. Their hands may be tied, so this is no guarantee, but is the best place to start. 

Let me know if I can be of any assistance. 

@Sean K. has the best advice above. I flip fire-damaged properties and own a restoration company. You should secure a quality company to do the mitigation and build-back. They will work on any needed permits, etc. This is not the type of thing you want to DIY. Also, remember you have the right to decide who works on your property and you should be indemnified for reasonable costs incurred. The insurance carrier might be great, then again, they may be looking out for their bottom line. A quality restoration company has interests aligned with yours--namely being sure it is done properly, well documented and properly paid. 

A Public Adjuster may become necessary if your carrier is not cooperative, but often they are not. 

Feel free to reach out with any questions I can help with. 

If you are referring to rehabbing a fire damaged property and need a policy to cover the property during the rehab, you will need a builders risk policy. Any company that writes those would be able to help.

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 your to tell the extent of damage.

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.

The concept of a "total loss" in the property damage world is kind of borrowing a concept from vehicle insurance, which is very different. What they might mean is that they hit policy limits, so the insurance carrier paid out the maximum amount the policy allows, but that has nothing to do with whether the house can be repaired for that amount. The real question is whether it is repairable or is a tear-down--you might be looking at a lot with a new build. If it does turn out to be a tear-down, remember to back the cost of demolition out of your max offer. It may cost you significantly to get it to buildable condition. 

I'd be happy to look at pictures and answer any other questions you may have.

All that said, I strongly discourage investors from taking on a fire-damaged property for their first rehab--the learning curve is steep...and expensive.

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 your 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.

Let me know if I can help--look at pictures, give specific advice, etc. Good luck!

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 your 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. 

In general, I do not recommend investors take on a fire-damage rehab until they have extensive experience in "regular" rehab first. Fire damage adds another thick layer of complications. 

1) If they use Kilz to seal the studs, the contractor doesn't know what they are doing. 

2) If you are "shopping around" to get someone to do it for less than the insurance settlement so that you can get free upgrades ("accommodate these items within the given budget") You will likely wind up dealing with someone that is not a professional company. There is plenty of business out there, why would they shoot their bottom line to help you skim from the insurance settlement?

 @Eliott Elias Is right. This is a pretty specialized field. 

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 your to tell the extent of damage. 

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 work with you. Companies will use certified techs and appropriate materials. Most companies will also be able to offer some sort of a warranty of their work. There are many things that could be overlooked as part of the renovation on fire-damaged properties.

@Carlos,

That is a hard question to answer because it depends on a number of factors: the extent of damage, location of the damage, age of the house, etc. So there is no "typical" approach. I would be happy to look at pictures/videos and tell you my observations. 

Sorry I'm late in on this one.

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 your to tell the extent of damage. 

At first blush the numbers don't sound as one might think. 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.

One last thing--as a general rule of thumb, I don't recommend someone taking on fire-damage unless they already have significant experience in rehab as fire-damage can add another (potentially expensive) layer to it. 

Let me know if you have any questions I can help with.