The Five Parties That Contact You After a Fire
Within a fortnight of a reported fire an owner typically hears from several parties, all describing themselves in similar language. They are not the same kind of business and they do not fund a purchase the same way.
Local rehabbers. Contractors and small builders who acquire, rebuild and resell. In Los Angeles this group is unusually strong because land value supports full reconstruction. They fund from a mix of private capital and short-term lending, they close reliably when the numbers work, and they will walk away from anything that does not fit their build capacity.
Regional cash acquirers. Firms holding capital specifically to buy in damaged condition. They fund from their own balance sheet, close on their own timetable, and take title in their own name. They are usually the fastest to close and rarely the highest offer.
Wholesalers and assigners. They contract to buy, then sell that contract to somebody else before closing. Some are competent and some are marketing to a list they do not have. The distinguishing question is whether the party will own your house or introduce someone who will.
Land buyers and developers. In Los Angeles specifically, a category that matters more than in most markets. Where zoning permits more than what burned, a developer may value the cleared lot above what any rehabber will pay for the house, because they are pricing what may be built rather than what was there.
Owner-occupant rehabbers. Individuals buying to rebuild and live in. They pay the most and complete the least often, because they depend on renovation financing that a fire-damaged structure frequently cannot support.
Which Type of Buyer Pays the Most for a Fire-Damaged House?
Three Free Checks Before You Commit to Anyone
All three take minutes, cost nothing, and are the same checks a title company would run later. Doing them first saves weeks.
How Do I Verify That a Cash Buyer in Los Angeles Is Real?
The recorder search. The Los Angeles County Registrar-Recorder/County Clerk maintains the public real property index. Search the exact legal entity name, not the brand on the letter. Brands and entities frequently differ, which is not itself suspicious, but a buyer who will not tell you the entity name is a different matter.
The licence lookup. If a party is representing you or marketing your property to others rather than buying it themselves, that is brokerage activity and requires a licence from the California Department of Real Estate, whose licence lookup is public and free. A principal buyer does not need one. Asking which category they fall into is reasonable and the answer is informative.
The proof of funds. A real proof of funds is a current bank or lender statement in the buying entity's name showing sufficient balance. A screenshot, a letter from an unnamed "capital partner," or a document dated months ago is not proof of anything. Ask for it before you sign, not after.
Red Flags Specific to This Market
Pressure tied to the claim. Anyone urging you to sign before your insurer has completed its assessment is acting against your interest. Your carrier is working to defined regulatory deadlines set out on our page covering California disclosure and claim requirements, and knowing them removes most of the urgency a buyer might manufacture.
An offer contingent on an inspection that keeps finding new problems. A buyer who reduces the price repeatedly after going under contract is either inexperienced or working a strategy. A firm figure held to is worth more than a high figure that drifts.
Confusion about jurisdiction. A local buyer knows whether your address is inside the City of Los Angeles or in unincorporated county territory, because it determines their permitting path and therefore their cost. A buyer who has not asked has not priced the job.
Vagueness about the entity. The name on the contract is the party you are dealing with. If it differs from the brand and nobody will explain the relationship, stop.
Is It Legal for Someone to Sell My Contract to Another Buyer?
Where We Fit
We are a principal buyer. We purchase in our own entity with our own funds, we take title, and we do not assign contracts to other parties. That makes us reliable rather than generous: a developer with a specific plan for your lot will sometimes beat us, and where we think that is likely we will say so.
Run every check on this page against us. Search our entity in the recorder index. Ask for proof of funds. If anything does not match what we have told you, walk away — and if the arithmetic on your property points somewhere other than a sale to us, our written figure will say that too. What the process looks like from there is set out on our page about how the process actually runs.
Questions About Buyers
Should I Take the Highest Offer?
Only after establishing that it will close. Compare offers on the figure, the funding, the contingencies and the assignment clause together. A slightly lower offer from a party who has demonstrably closed before is usually worth more.
How Many Offers Should I Get?
Two or three from different buyer types tells you the range. Beyond that you are mostly repeating the exercise, and the property is carrying cost while you do it.
Does a Buyer Need a Licence to Buy My House?
Not to buy it for themselves. A licence is required to represent others or to market property on their behalf, and the California Department of Real Estate lookup will confirm whether a party holds one.