{"id":507,"date":"2016-10-20T12:03:54","date_gmt":"2016-10-20T16:03:54","guid":{"rendered":"http:\/\/www.realestatejunkie.com\/blog\/?p=507"},"modified":"2016-10-20T12:03:54","modified_gmt":"2016-10-20T16:03:54","slug":"buying-houses-with-hurricane-matthews-damage","status":"publish","type":"post","link":"https:\/\/www.realestatejunkie.com\/blog\/buying-houses-with-hurricane-matthews-damage\/","title":{"rendered":"Buying Houses with Hurricane Matthew\u2019s Damage"},"content":{"rendered":"

\"hurricanedamage\"<\/a>The State of Florida and many other states were affected by Hurricane Matthew, leaving many Sellers with problem houses.\u00a0 I am located in Oviedo, Florida, and being a transplant from Michigan, I have never been in a Florida Hurricane.\u00a0 All of my houses were blessed with minor damage such as big trees down in the back yard, shingles flying off the roof, branches and trash everywhere. I am very grateful to God for these blessings.\u00a0 Other Sellers were not so fortunate and my heart goes out to them.\u00a0 They now have to deal with making a huge decision of fixing the house or selling the house.\u00a0 Some Sellers may not even have insurance on their house.\u00a0 However, if they do have insurance, let me explain the process.<\/p>\n

An insurance claim can be long and dragged out with many Sellers becoming very frustrated with the insurance company\u2019s findings.\u00a0 These are Sellers that may need your help with you buying their house.\u00a0 First, let me explain the process on Insurance Claims.\u00a0 Sellers will notify the insurance company of damage to the property along with providing them a list of items damaged.\u00a0 If the Insurance Company and the Sellers can come to an agreement, then a check is sent to them in their name and the names of all mortgage companies that may have a lien on the property.\u00a0 Pursuant to the terms of the mortgage that was signed by the Sellers, all insurance proceeds are to be used to re-build the property to make sure that the mortgage companies have an asset that is worth the amount of their loan.\u00a0\u00a0 When there are large claims of loss to the insurance company, they normally dispute the amount of the claim and the Seller will have to hire an independent insurance adjuster to assist them in disputing the claim.<\/p>\n

I am going to tell you about a home that I purchased from a Seller that had fire damage.\u00a0 First off, the Seller had already contacted the insurance company and the claim was approved.\u00a0 However, the funds were to be sent to the Seller\u2019s contractor in drafts.\u00a0 My company is a Limited Liability Company, so we were the company that would be the contractor for the Seller.\u00a0 We had to perform a specific amount of work and then they would send out someone to inspect the work and issue a check to our company.\u00a0 \u00a0So \u2026 we knew how much money the Insurance Company was going to pay for the repairs to the home.\u00a0 We knew how much money it was going to cost for the repairs which, by the way, was lower than the amount that the Seller was given on the insurance claim.<\/p>\n

How did I figure out the purchase price of the home?\u00a0 First, I needed to know the value of the home after all the repairs; this is the After Repaired Value.\u00a0 I then needed to know my cost for the repairs of the home and the cost for the repairs that the insurance company was willing to pay.\u00a0 I used a simple formula\u2026I took the ARV x 65% – My Repair Cost = Maximum Allowable Offer.\u00a0 I also deducted the amount of insurance claim from the amount of my repairs to see how much more I could give the Seller.\u00a0 Let me give you an example:<\/p>\n

ARV ($100,000) x 65% = $65,000 \u2013 My Repairs ($25,000) = Maximum Allowable Offer $40,000<\/p>\n

Insurance Claim $45,000 \u2013 My Repairs $25,000 = $20,000 difference<\/p>\n

Maximum Allowable Offer $40,000 + $20,000 = New Maximum Allowable Offer of $60,000<\/p>\n

This was a win-win situation for my Seller.\u00a0 I prepared a contract that clearly stated all the terms and conditions of the agreement and a Deed was held in escrow until the insurance claim was completed and I could purchase the property.\u00a0 If I would have purchased the property immediately then the insurance claim could be invalid as the Seller no longer owns the home and I didn\u2019t want to take the chance with having any problems.\u00a0 Should you purchase a property from a Seller who has an insurance claim and you are thinking of acting as their contractor, you will need to read all the paperwork.\u00a0 A Licensed Contractor may be necessary, as it was in my deal, along with having an Attorney assist you with all the paperwork.<\/p>\n

I hope this thought will help you assist many Sellers that may have to sell, have insurance and need our help.\u00a0 Be fair with your offer and make a win-win situation and don\u2019t take advantage of the situation.\u00a0 We all need to work together to help people during these times of need.\u00a0 Whatever you do as an Investor, it affects all of us, so make it a win-win situation or walk away!<\/p>\n

Please keep sending me your questions and topics that you would like to hear about, so I can be sure to keep feeding you with the information that you need in order to move confidently through 2016 and bring your Real Estate Dreams to Life!<\/p>\n

 <\/p>\n

Kimberlee Frank<\/strong><\/p>\n

www.ForeclosuresGoneWild.com<\/a><\/p>\n

www.RealEstateJunkie.com<\/a><\/p>\n

www.ShortSaleNegotiating.com<\/a><\/p>\n

www.SellFastRealty.com<\/a><\/p>\n

Like me on www.facebook.com\/foreclosuresgonewild<\/a><\/p>\n

Like me on www.facebook.com\/sellfastrealty<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The State of Florida and many other states were affected by Hurricane Matthew, leaving many Sellers with problem houses.\u00a0 I am located in Oviedo, Florida, and being a transplant from Michigan, I have never been in a Florida Hurricane.\u00a0 All of my houses were blessed with minor damage such as big trees down in the […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,11],"tags":[],"class_list":["post-507","post","type-post","status-publish","format-standard","hentry","category-local-guru","category-free-articles"],"_links":{"self":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/507","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/comments?post=507"}],"version-history":[{"count":0,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/posts\/507\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/media?parent=507"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/categories?post=507"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.realestatejunkie.com\/blog\/wp-json\/wp\/v2\/tags?post=507"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}