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Author Topic: Finding Burnt-Out Deal?  (Read 2442 times)

Offline EquityNCashFlow

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Finding Burnt-Out Deal?
« on: November 08, 2011, 09:04:30 pm »
I have been rehabbing properties but has not done a burnt out. I'm at the point where i'm comfortable to take on a burnt out project.
Now my challenge is finding the right burnt out deal. It seems like supply is limited and there is a great demand for it.
I have looked at a few burnt-out, made offers but did not get it. I would guess my offers were too low.

The question i want to ask here is how do you consistently find these burnt out deals? Do i need to work with a wholesaler specializing in burnt out deals?

Offline motivatedceo

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Re: Finding Burnt-Out Deal?
« Reply #1 on: November 09, 2011, 06:01:59 am »
I have done one myself, with every good results actually. I wound up keeping it as a rental.
 
They are very random. I have seen wholesalers with them, I have seen them on Craigslist and even on the MLS. I would check all 3 of those resources regularly and one should turn up. Good luck.

I have been rehabbing properties but has not done a burnt out. I'm at the point where i'm comfortable to take on a burnt out project.
Now my challenge is finding the right burnt out deal. It seems like supply is limited and there is a great demand for it.
I have looked at a few burnt-out, made offers but did not get it. I would guess my offers were too low.

The question i want to ask here is how do you consistently find these burnt out deals? Do i need to work with a wholesaler specializing in burnt out deals?

Offline GRIDcorp

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Re: Finding Burnt-Out Deal?
« Reply #2 on: November 26, 2011, 05:30:32 pm »
You need to target your marketing to find these kinds of deals. It may be as simple as looking at the police blotter in as many local papers as possible to find out where there has been a fire. Maybe network with fireman, there are many good volunteer fire companies in Pittsburgh, and all need a donation. Insurance companies may be another good source if not large ones the local office could pass your name to any owner who has had a fire and wants to sell.

Offline jmd_forest

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Re: Finding Burnt-Out Deal?
« Reply #3 on: November 28, 2011, 10:51:07 am »
My first real deal as an investor ( I had purchased my initial investment property a little under market value about 2 years prior) was a "light" burnout. It  was not significantly different than any other major rehab property I've purchased since. The 2 small snags I hit was I needed an electrical inspection before the township would allow the electric turned back on to get the rehab started and the township required a licensed engineering inspection of a singed roof truss with "recommended repairs" to approve the building permit.

Only about 20% of the total rehab was due to the fire, the rest was 30 years of "deferred maintenance".

Offline kdhastedt

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Re: Finding Burnt-Out Deal?
« Reply #4 on: November 28, 2011, 11:29:37 am »
"....the rest was 30 years of "deferred maintenance".

AKA - 30 years of neglect of the smallest details...
I have CDO...it's like OCD but in alphabetical order - the way it should be!

Offline jmd_forest

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Re: Finding Burnt-Out Deal?
« Reply #5 on: November 28, 2011, 01:20:47 pm »
More like 30 years of complete and total disregard for anything and everything that required thought, effort, or money. They simply lived there for 30 years .... not even sure they cleaned.

 




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