A fire damaged house can be a worthy investment if it’s in a good neighborhood with competitive comps. The challenge for investors is finding a fire damaged property that they can renovate and sell for a premium price. Not all fire damaged homes are going to be offered for sale. Here are some strategies to help you find the right property with a motivated seller.
Contact local firefighters
One of the best potential sources of leads for homes that have fire damage is the local fire department. Firefighters in your area may have the best inside information regarding these properties and their exact locations. You’ll need to connect with each station and build relationships with the firefighters to get their insight.
Get in touch with insurance agents
Another way to find property leads is by asking insurance agents. Most fire damaged homes have claims filed with a standard homeowners insurance policy. The insurance agents that deal with residential homes may offer investors some leads for potential properties for sale. Investors can start by reaching out to their personal insurance company and agent and then cold-call agents from other insurance companies.
Check Twitter & Google Alerts
You can also use technology to help you find leads for properties that have fire damage. Set up your internet browser to send you notifications when there is a news story about a residential fire in your area. You can use Twitter, Google, and other social media sites to comb through news stories about local fires in your community. These homes may be offered for sale to the right buyer.
Reach out to neighbors and people in the community
Don’t forget to also talk to the people in your community to get information about homes that may have fire damage. Connect with your neighbors and reach out to neighborhood associations and other local social groups that give you access to the latest happenings in your area. Let everyone know you’re looking to invest in fire damaged property so they will think of you when there are potential leads.
Contact realtors and mortgage brokers
Buying and flipping fire damaged homes is a niche market that isn’t for everyone. You should also reach out to realtors and mortgage brokers to get details about houses they may have come across and walked away from due to fire damage. Create business cards or expand your social media followings to get the word out to others in your industry.
Search the MLS
You should also do targeted MLS searches or other real estate listings. Even though many fire damaged homes may not be listed on the MLS, there are still times when you can find a lead through this search tool. Pay careful attention to a listing’s description when looking for potential investment opportunities. You can set an automated search for properties that could be lucrative instead of sifting through the listings each day.
Drive through different neighborhoods
Finally, investors may also find a potential lead by visiting different neighborhoods. Driving by your favorite neighborhoods regularly could give you first access to a fire damaged home. Take the scenic route the next time you have to visit a client or another property in your portfolio. You may come across a lead naturally in your travels and get access to an unexpected investment opportunity.
Fire damaged property can help you bring in more profits as a real estate investor. Once you find the right property, you can rehab it and turn it into income as a rental property or fix and flip.