Solutions Value: Over $25K in Lender Mandates Removed, Adding $400,000 in Property Value
NFE Solutions: FES (Flood Expert Survey) & LOMA (Letter of Map Amendment)
A property buyer recently engaged National Flood Experts (NFE) to conduct a Flood Expert Survey (FES) on a multifamily property in Chesapeake, VA. Their due diligence revealed that the property was in a flood zone, causing insurance expenses to impact the underwriting numbers significantly. The property owner hoped to reduce the cost of insurance expenses and ultimately maximize profits.
The expert team at NFE did a thorough (and complimentary!) desktop engineering review of the property to identify potential cost savings. Ultimately, additional on-site data was required, and a FES was suggested to the Client, who agreed. After NFE's field team completed a comprehensive FES, the data determined that several buildings qualified for removal from the AE flood zone via a Letter of Map Amendment (LOMA).
The LOMA was completed successfully in a matter of weeks, saving the property owner over $25,000 in lender-mandated flood insurance. As a result, the property value increased by $400,000+ (assuming a 6% CAP rate).
A complimentary desktop engineering review is an excellent choice for any flood-zone property owner or buyer who wants to avoid underwriting challenges and explore potential cost savings.
The solutions provided by NFE allowed the Client to plan accurately for the property's future and maximize NOI.
