Tim Bell explains how real-estate investors find damaged houses through insurance claims. He says about 73% of homeowners hit by fire or flood don't want to rebuild, creating opportunities for fix-and-flip deals. The trick is getting access to claim lists, which usually requires connections like an agent relative.
He stated about 73% (speaker prefaced it with uncertainty: "I think ... 73% of the time").
The next one. Insurance companies. Do insurance companies know about damaged and partially burned houses? Yeah, they do, because people make claims. Okay, now here's a question. Are you going to be able to walk into that American Family insurance office on Monday morning and say, hey, give me a list of all the people that filed claims against their house last week? No, you can't do that. This is one of those methods that does require that you have connections. Okay, what if your brother in law is, is an agent in that office and has access to the fact that people are making claims? I can't remember the name of the. There's some insurance institute or something that runs statistics on major damage on houses. I apologize. I can't remember exactly what it is, but I think it's about when someone has a catastrophic disastrous type claim. In other words, they've had a fire, they've had a flood, they've had major damage in the property, things like that. A high percentage of the time. I think it's 73% of the time, last time I checked, 73% of the time. They do not want to move into that house again. They want to pay it off and they want to walk away and go find something else. Well, that gives us a perfect opportunity as a fix and flip investor or a wholesaler to go in, fix up the property and then resell it again. Most of those folks statistically do not want to move back into their house. So that can be an advantage or an opportunity for us.
