December 22, 2021
How to sell a hurricane damaged property (And keep the insurance check)
We are starting to buy up properties that were damaged in hurricane Ida. The hurricane was devastating in some areas and we hate to see it. While a lot of people are rebuilding we are speaking to lots of people who just don’t want the stress of rebuilding. What lots of them are doing is keeping the insurance check for themselves and then selling the house in as is condition for cash. This is a win-win scenario as the seller gets to combine the insurance check with the sales check and use that to buy a new house that doesn’t need to be repairs. For investors like us it is also a win as we can buy the houses for a cash price that allows us enough room to spend the time money and energy on rehabbing the house and restoring it to its former glory.
In the video below our founder Aussie Steve is talking through the process of selling a hurricane damaged property while he walks a property that we were looking to purchase. Watch the video or read the transcript below.
I’m here at a property that we’re looking to purchase in Laplace. We haven’t got this property under contract yet. We’re just checking it out right now.
We’ve had a look at a lot of properties in Laplace, and unfortunately, hurricane Ida was really devastating here. Lots of homes have been damaged, and this has affected the market as everyone is a little bit nervous about it. Obviously, as an investor, you will be concerned about how the market is going to bounce back. Lots of people are leaving and selling their homes. So, you are left wondering, what will happen to property prices? More importantly, what’s going to happen to insurance prices? Both flood and hazard insurances are going up which will in turn affect the affordability of homes.
So, people are nervous, and we are too. But we’re cautiously optimistic as well. Laplace is a good area, and we feel it will come back. There is prospect of building new levies in a couple of years. One definitely can’t take that to the bank, but it’s a good tailwind, so we are looking to make a few investments here. We intend to take some of these houses that have been damaged, fix them up and hold them as long-term rentals, which is what we like to do often. We could also flip them as well. But we feel flipping will be dangerous right now as we don’t know what’s going to happen, but if we can get it at a price where we can fix it, it will be great for our cash flow. This gives us some certainty, and we can wait for the market to come back in the years to come.
It’s really sad that there’s a lot of people’s homes that have been damaged, and we definitely don’t like seeing this. From a lot of people that we’ve spoken to, what they’re doing is, they are taking their insurance check and keeping it. Then they sell the property for cash to us in as is condition. So, it tends to work out right for someone who doesn’t want to fix it up. The insurance payout is generally pretty good because there has been a lot of damage, so they’ll get a decent check from the insurance company and then for us, we can buy it for cash in as is condition. So, they keep the check, and we buy the property in as is condition, and that allows us to buy it at a price where we can afford to put money in to fix it and make it a nicer home.
We have a great access to materials contractors, so for us, fixing these things isn’t as daunting as it will be to someone who’s just a regular person, who doesn’t do a lot of home repairs. That’s sort of what we do, so it’s less of an issue for us. We can do it cheaper, and we can do it with more certainty.
So, it can often make sense for such a person to take the insurance check, take our check, combine the two to buy a new home. They don’t have to worry about the rehab, so they’re happy.
It’s a good deal for them and for us as well. We can come in, and we can afford to put our money, time and effort into repairing the house, and hopefully we’re going to get a good investment over the long term. Everyone wins in this scenario.
So that’s what we’re doing right now. If you’ve got a property in Laplace, and you would like to sell it in as is condition, we’re definitely interested. We buy properties all around Greater New Orleans.
Laplace is obviously an interesting area right now, so guys, reach out to us. We’re happy to chat about your situation. You can go to our website, homebuyerlouisiana.com, there is a lot of information there about selling your house in as is condition. Give us a call, we’re always happy to chat with you just to let you know your options.
Thanks so much.
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