Iowa situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in Iowa

Wholesaling fire-damaged houses in Iowa means putting a burned Des Moines home under contract, then assigning that contract to a buyer who will rebuild or demolish. For one-to-four unit homes, Iowa Code 543B.6A requires a licensed broker and written disclosure to every party. Check the current text before you sign anything.

Broker rule 543B.6AInsurance claims100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a fire-damaged house in Iowa?

Yes, in most cases. For a one-to-four unit home, Iowa Code 543B.6A says you must be a licensed Iowa broker or be represented by one, and every party must receive written disclosure before the contract is signed. A fire does not change that rule. It adds insurance and title questions. Ask an Iowa attorney or the Iowa Real Estate Commission how the rule fits your exact deal.

A burned house is a hard sale for the owner. Smoke and fire-hose water can ruin what the flames missed. You offer a clean exit. Our fire-damaged house guide explains how to size up the damage before you make an offer.

Write down what you are really buying: the right to buy at a set price, not the house itself. Your contract should be assignable and should say the claim, salvage and any lender rights are handled in the way the seller and buyer agree. Read our assignment guide and equitable interest guide first.

Fire-Damaged Houses in Iowa at a glance

Main wholesaling law	Iowa Code 543B.6A, for 1-4 unit homes
Who may wholesale	A licensed broker, or someone represented by one
Disclosure	Written, to all parties, before the contract is signed
Missed disclosure	Seller or buyer may cancel before closing
Civil penalty	Up to the greater of $10,000 or 10% of the price
Recording	A groundwater hazard statement is required (558.69)

The opportunity

Why fire-damaged houses sell in Des Moines

Polk County has many older frame homes, and old wiring, space heaters and kitchen fires cause losses every year. A burned house in an east-side or north-side neighborhood can sit for months while the owner waits on paperwork. Rebuilders and landlords often prefer a lot with a known problem to a clean house at full price. Pull comps for both the repaired and the cleared-lot outcome, then check your number with the ARV calculator.

Tired owners

Many owners want out of the claim process. See cash for keys if tenants or relatives still hold keys.

Insured and uninsured

Insured owners have cash coming and may be slow to sell. Uninsured owners often decide faster.

Lot value

Even a total loss leaves a lot, utilities and a street address a builder can use.

Get the free starter kit See the mentorship

Lead sources

Where to find fire-damaged leads in Des Moines

Driving routes. Boarded windows and burn marks show up fast. Use our driving for dollars guide.
Code enforcement. City notices on burned structures point to owners who must act. Read about code violation leads.
Neighbors and mail carriers. People nearby often know who owns the lot and whether anyone is coming back.
Owner records. Look up the owner with the county site. See finding a property owner.
Fire reports. News coverage and public incident logs name streets. Add them to a call list.

Your exit

Who buys burned houses in Iowa

Your buyers are rehabbers with a contractor on staff, builders who want an infill lot and landlords who can finance repairs. Show each one the photos and a rough rebuild number. Build the list early with our cash buyer guide.

Tell buyers that closing depends on the insurance question being settled in writing. A clear repair estimate and a clean title work in your favor.

Book a free call

Step by step

How to start wholesaling fire-damaged houses in Iowa

Walk the property safely. Stay outside any unsafe structure and photograph what you can see.
Ask about the claim. Learn whether the owner has insurance, a lender and a claim number.
Check title. Order a title search to find mortgages and liens.
Run the numbers. Use the MAO calculator with a repair budget that includes demolition.
Get the broker in place. Sign the agency agreement and give every party the written disclosure.
Sign the contract. Use a contract that is assignable. See writing a wholesale offer.
Close at title. Use an investor-friendly title company and settle the lender payoff.

Your checklist for wholesaling Fire-Damaged Houses in Iowa

Confirm who holds the insurance claim and any lender interest.
Hold written disclosure and the agency agreement before signing.
Do not enter a structure that may be unsafe.
Add a short inspection window for a structural review.
Ask title to confirm who signs and who gets paid at closing.

An Iowa example: a kitchen fire on the east side of Des Moines

Seller price	$62,000
Estimated rebuild cost	$78,000
Repaired value	$185,000
Buyer all-in cost	$140,000 plus carrying costs
Assignment fee	$9,500
Time to close	24 days

This worked example is an illustration, not market data. A landlord in Des Moines lost half of a two-story house to a kitchen fire and had not filed the claim. She wanted out. You met her at the property, signed an agency agreement with your broker and handed her the written disclosure.

You put the house under contract at $62,000 with a 21-day inspection period. A rehabber toured the shell with his contractor, priced the rebuild near $78,000 and agreed to take the contract.

At the closing the title company paid off the small loan and the rehabber paid you a $9,500 assignment fee. The seller kept her time and her peace of mind.

Iowa rules to know

Iowa broker rules and fire-loss paperwork

Iowa Code 543B.6A covers wholesaling of residential property with one to four dwelling units. Under it, a wholesaler must be a licensed broker or be represented by one, must disclose each party’s identity and explain that a wholesaler holds an equitable interest and may be unable to convey title, and must give all parties a copy of the executed agency agreement. Reading our license guide helps, but check the current text.

If the disclosure is missed, the seller or buyer can cancel before closing without penalty, and the civil penalty can reach the greater of $10,000 or 10% of the sale price for each property. Deeds recorded in Iowa also need the groundwater hazard statement or the exemption language, so ask your title company how that applies to a burned lot. Talk to an attorney about insurance proceeds.

Learn it with a mentor

Learn to price damage with confidence

Fire deals fail when the scope is a guess. Mentorship students send us photos and notes, and we help them separate repairable houses from lots.

See the course See the mentorship

FAQ

Fire-Damaged Houses in Iowa: common questions

Is wholesaling fire-damaged houses in Iowa legal?

Yes, when you follow Iowa Code 543B.6A for one-to-four unit homes. That means a licensed broker is involved, written disclosure goes to every party and the executed agency agreement is shared. Rules and penalties can change, so check the current text or ask an Iowa attorney before you sign a contract.

Who gets the insurance money on a burned house?

It depends on the policy, the lender and the contract. Lenders are often named on payments for a mortgaged home. Spell out in the contract whether the claim goes with the sale or stays with the seller, and have a title company or attorney confirm the plan before closing.

Should I go inside a burned house?

Only when the owner, the city and a qualified professional say it is safe. Burned structures can have weak floors, loose wiring and unstable roofs. Photograph from outside, add an inspection period to your contract and let the buyer bring a contractor or an engineer.

How do I price a fire-damaged house in Des Moines?

Start with the repaired value from nearby sales, then subtract a full rebuild or demolition budget, carrying costs and your buyer profit. Use the ARV and MAO calculators, and keep a cushion because fire and water damage usually hides more than it shows.

Can I assign a contract without a broker?

For one-to-four unit homes, Iowa Code 543B.6A requires a licensed broker, or representation by one, to wholesale. Do not rely on the owner exemption in chapter 543B for this kind of deal. Ask the Iowa Real Estate Commission or an attorney to confirm the current rule.