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TRANSCRIPT
Why Fire Damaged Properties?
Discover the Hidden but Hugely Profitable Business Niche in Fixing and Flipping Fire Damaged Properties
About Speaker
Tom (TaeWoo) Kim
- Data scientists / AI engineer by day
- Real estate entrepreneur by night
- Philadelphia row townhome flipping in 2002-2005
- Successful startup experience in adtech
- Featured on WSJ, Yahoo Small Business Advisors,
Amazon (AI & Big Data)
Disclaimer Before I Go On
1. This is NOT about taking advantage of people when
they’re in dire need, rather providing a service that
people need in times of trouble
2. I am NOT
a. a lawyer
b. affiliated with any insurance / public adjuster
c. a fire restoration guru
Fire Damaged Properties = Business Niche
Fires. Happen. Every Day.
● 1.5m Fires Every Year
● Average 360k Structural fires every year
● > $6.7 billion in direct fire damage
● Each home fire - $12k+ damage
SOMEONE IS ON THE RECEIVING END OF THAT PAYMENT
Property Fire = MOTIVATION TO ACT
The #1 Reason Why Fixing / Buying Fire Damaged Properties
= Easy Sell
● More Than 7 In 10 Americans Fear Homelessness
● Fear of homelessness > fear of death
● Emotional attachment to biggest investment of lifetime
Insurance Timebomb
● Owners MUST act to claim insurance
● Most decisions are made within a week of fire
○ No “Tire-Kicking”
Some Facts - Fire = $$$
● Restoration = $210 billion restoration industry
● Fire restoration = average $12k per hour fire damage
○ AngiesList - $800-$93,000, most likely pay
between $3,200-$25,000.
● Water damage from $1,038 to $3,607
● Mold removal = $1,111 and $3,211, as high as $6,000.
Fire Restoration Process (Multiple Business Entry / Profit Points)
Step 1: Emergency Contact
Step 2: Inspection and Fire Damage Assessment
Step 3: Immediate Board-Up and Roof-Tarp Service
Step 4: Water Removal and Drying (if water damage is present)
Step 5: Removal of Smoke and Soot from All Surfaces
Step 6: Cleaning and Sanitizing
Step 7: Restoration
Who Benefits from Property Fires?
Fire Restoration People (depends on damage)
● Fire Restoration & Water Damage
● Smoke Damage / Odor Cleanup
● Pack Out & Storage
● Dehumidification / Mold
● Debris Cleanup
● Contractors (Reconstruction)
Who Benefits from Property Fires?
Real Estate - (Extreme event = Extreme emotions = Extreme
motivation)
● Investors / Agents
○ Act as “consultant” - markup fire restoration
○ Buy, Repair, Fix
○ Assign Contract / Referral Fee
● Public Adjusters
How to Target Fire Damaged Properties
Chase fire trucks
● Illegal (if too close, or at all) in some cities/ordinances
● Surprisingly competitive
○ Professional “fire chasers”
● Q: How do you know when or if
○ they are dispatched
○ it’s for fire?
■ Medical, Auto, Gas / Water Leak, Saving
Cat, etc. etc.
○ it’s for PROPERTY fire?
How to Target Fire Damaged Properties
Smarter Way? OK, CB Radios
● Complicated Insane emergency responder (ER) jargon
● Do you have 24x7 to listen non-stop?
○ One channel PER city
○ Hire a VA - even at $5/hr = $3,650/month
● Not all ER use same radio technology
● Internet streaming? Not much better
How to Target Fire Damaged Properties
Network with Firefighters?
Many (including myself) have tried, but failed
● FD not equipped for fast communication to outsiders
● It’s not their job
● Most importantly… not THAT interested in helping your
business
How to Target Fire Damaged Properties
Network with People in Fire Restoration
Often, jobs are referred to each other
● Ex: boardup guys will refer the next guy in the phase..
And so on
● Some franchisors “help” with lead generation
● Problem: What if you are NOT “in”? Or want other lead
sources?
Old Ways of Targeting Fire Damaged Properties
SLOW - TIME CONSUMING -
INEFFECTIVE
NEW, BETTER Way of Targeting Fire Damaged Properties
Better Way - FireDamagedProperties.com
● Using latest big data / machine learning / AI technology
to collect data & Network of reporters
● No need to monitor ER radios 24x7
● No need to chase fires, network with fire fighters, etc.
● (Real Time) Daily email notification of fires with
IDENTIFIABLE addresses within past 24 hours
● National coverage
● Unlimited per state subscription (for now)
https://www.firedamagedproperties.com/
NEW, BETTER Way of Targeting Fire Damaged Properties
https://www.firedamagedproperties.com/
NEW, BETTER Way of Targeting Fire Damaged Properties
FireDamagedProperties.com Real Time Property Fire Data
Subscription:
● Unlimited fires notifications
● Within 24 hour email delivery with property fire date,
location, and blurb
● Multi-state discount available (inquire via email)
● Bulk data licensing available to corporate buyers
● Coming soon: optional homeowner information
https://www.firedamagedproperties.com/faq/
Want Some Stats?
See How Many Fires in Your County
- https://www.firedamagedproperties.com/fire-stats/
That’s It!● Questions / Comments?
○ / FireDamagedProperties
● Interested in real time fire damaged property data?
○ https://www.firedamagedproperties.com/