Hurricane Damaged Home!

I placed 100 bandit signs around town last wednesday and today I got a call from a lady wanting to get rid of her 3 bed / 2 bath hurricane damage home. She already told me on the phone what she was looking for it. I do not exactly know what the ARV is, but I will call my realtor friend to help me with this. Also, I will contact my contractor friend to get an idea on how much it would cost to fix the house. I plan on wholesaling the house to a local investor. What should I do before I get the property under contract? Should I check the title first to see if there are any liens on it? What else? Please help, this is my first deal and I want to do it right. I will try to meet up with the homeowner tomorrow to evaluate the property. Thank you guys for your help! I am very excited about this, since it is my first deal!

Find out what the “hurricane damage” consists of! Be very wary of a property that got really wet…I almost guarntee ensuing mold/mildew if the water was extensive. Make sure any written offer is contingent upon an inspection by a qualified/certified inspector.

I would have a quick title extract done with an opinion…but save the full title search, etc. for closing. It is not really your problem because all liens will need to be satisfied at closing…by the seller.


Thanks Keith! Some other investors will be taking a look at it on Monday she said. So I would like to get it under ctonract atleast. She is already set on the price she wants for it. So no negotiations there, When I put it under contract I will put the contingency you have mentioned. What else do you think I should put so I can back out just incase I need to?

Something Like:
This sales contract is contingent upon an inspection by a qualified/certified inspector.


Yes…absolutely (AKA a weasel clause…to weasel out if you need to)…


Great Keith, I am going to take a look at it right now. I can’t get in the property though, but I can take a peak from the outside to atleast get an idea. I have my realtor running comps on it right now. Keep you guys updated! Thanks for your help Keith!

  • DarvinM

Good luck…let us know more!


Well, I looked at thouse and it looked like a prtty good deal. It was worth ARV $115,000. Seller wants 50K I phoned 3 investors two of them ar going to take a look at the property and on offered already to buy it from me or he will fund the entire project and split the profit when we sell. I am going to see the owners tomorrow to have them sign the paperwork and meet up with one of the investors on Monday. I’m so excited!! WOoOhoo!

  • DarvinM

Howdy Darvin:

Way to go. The last building I bought I put under contract sight unseen. I saw it on Loopnet on Thursday and had the contract in the title company that Friday. I too offered what the seller was asking. I did not get a title report of any kind and had no idea of the repairs it needed. I had a 30 day free look ($100 option fee actually) by getting it under contract with an inspection period. It turned out it needed twice the work as I first guessed from $100K to $220K but the after repair appraisal was $200K more than I guessed too which made it even a better deal than I had expected. My quick response beat several other investors to the draw.

I did have to spend thousands on environmental inspections for the lender and I waited on the title report before spending the money. I did drive the 3.5 hours to Corpus and spend $100 in gas to at least inspect the building the next day. I hope you find some deals like this. I am sure I could have flipped it for $50K but I wanted to hold on for the $300K home run swing.

only thing with hurricanes is holding costs

a lot of homes are damaged and contractors often hawe to put everyone on a wait…

be sure how much your repair costs are and how fast you cab get it fixed,

I am only going to be wholesaling it. So I am not worried about any holding costs.

Howdy Pinoydarv:

You may not be worried about holding costs but you buyer will be and therefore you should be too. If you lay out all the costs to your potential buyers they will be impressed with the effort you have put out and you will look more professional to them and they will want to do business with you.

It turns out the comps are lower than expected and the repairs are much higher than I anticipated. Oh well… On to my next deal!