myEmpirePROQuestion: “Can a fire damaged property be flipped or wholesaled?”
Yes… The answer is yes.
What else would you want to flip than damaged properties…
Keep in mind that people would say “why would somebody want to sell you a house at 60¢ in a dollar when they are not crazy?”
You are right, they are not crazy, sometimes it is because the house needs work… sometimes it’s because it’s fire damaged.
Though it is not guaranteed that every time a house is fire damaged, somebody is going to sell it to you at a discount.
No, that’s not always true.
So, Can a fire damaged property be flipped or wholesaled?
For example I have somebody right now… for the past two months they have been debating back and forth with each other,
…if it’s to go under contract with me with the property in Jamesburg that was fire damaged.
People do think that their property is worth what it’s not worth because it’s personal or emotional.
And you just got to leave them alone and focus on learning how to market to multiple people so you can have multiple deals coming in.
The point I am making there is that fire damaged property is what you are looking for.
If it’s fire damaged that’s just damaged, it’s not a big deal.
You are looking for ugly houses, houses that need work… you are looking for houses that your fix and flipper or your cash buyer can add value on to.
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That’s what you are looking for.
So if it’s fire damaged like, “hmm, interesting what does that cost to repair?”.
Or for example this particular property needs to be pulled down,
…basically it’s just land value minus demolition because it’s going to cost something to demolish the property.
So it’s land value minus demolition, that’s what a person can pay for the property.
It’s not gonna be as simple as “Hey the property is worth $400,000 based on square footage”.
Now you have to look at the land value, you have to look at how big the land is.
Can they build a brand new 4 and a half bedroom or 2 and a half bathroom there…
You want to assess it.
We have covered all of that, how to assess the value of a property in 11DaysChallenge.
We are gonna assess it like a normal day, like how much is it gonna cost to replace the structure.
That’s what you are looking for and then you give an offer.
It’s as simple as that.
So it’s the same thing but not just fire damaged, yes that’s just one type of property that you can absolutely flip and wholesale.
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Generally speaking, your conversations are a lot easier if the property needs work.
You are going to encounter people that will tell you all the time that their house is in perfect condition,
…that’s because they think they are going to convince you somehow to magically close on a deal at a retail price.
And you are going to encounter a lot of that.
That’s why I am not a big fan of anything outside of attraction marketing.
I’ll teach you attraction marketing and that’s it.
Meaning you learn how to plant bait and learn how to fish.
You are not in the game of hunting because most of the time what you’ll find is that you’ll end up killing the person you are hunting or you kill yourself in the process.
But when you are fishing, you give food, and attract the fish… you are not gonna necessarily kill the fish…
you are just probably gonna put them in a nice… I mean you create value, does that make sense.
I don’t wanna go too far with the analogy… the point there is that it’s a different type of mindset.
When you are cold calling people, most people think their house is clean and what it is…
At least for the purpose of what you are trying to do but when you use attraction marketing,
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you attract people that have situations like:
fire damaged properties.
too much work.
“I am moving to Florida and I don’t have time”.
“I’m sick right now, I don’t want to deal with that extra second home. I just wanna get rid of it”.
Those are the kinds of situations that you are going to be dealing with because you actually get to bring value.
That’s where the money comes from… from the value that you are bringing to these people.
So there’s no magic at the end of the day.