Pre-LOI: Verifying Flood Zones During Real Estate Underwriting
During the initial underwriting stage, whether a property is in a flood zone is often not one of the first questions that come to mind in many parts of the country.
Flood Zone Properties: A Missed Opportunity for Investors?
If not in a historic flood-prone area like Houston, it's something that, if overlooked, could have consequences later in the buying process, but also could be an opportunity missed.
Hidden NOI potential exists in flood zone properties all over the country. Situations exist where properties can be reclassified outside of the 100-year flood zones removing lender requirements for flood insurance and creating massive immediate value in an investment property.
The Importance of Checking for Flood Zones During Pre-LOI Stage
Knowing these opportunities may exist, it's worth contacting National Flood Experts during the Pre-LOI stage to check and confirm if any or all buildings may be in the flood zone.
A quick look at the property through the lens of an expert could tell you many details that you may then use to factor into your underwriting analysis, such as exactly how many buildings a lender will require flood insurance, the opportunity for potential flood zone changes, etc.