Louisiana situation guide · Updated November 2026

Wholesaling Mold-Damaged Houses in Louisiana

Wholesaling mold-damaged houses in Louisiana means putting a moisture-ruined home under contract, often in New Orleans, and assigning that contract to a buyer who will remediate it. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) now sets disclosure and cancellation rules for one-to-four unit homes, so the seller must be told your plan in writing before signing.

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The short answer

Can you wholesale mold-damaged houses in New Orleans, Louisiana?

Yes, in most cases. A wholesaler can contract on a mold-damaged New Orleans house and assign it, but Act 807 of 2026 (R.S. 37:1448.5) calls for written disclosures, a five-day cancellation right and an escrowed deposit of at least 1% of the price. Check the current text with a Louisiana attorney. Treat the disclosure packet as part of the product you sell, not as paperwork you tolerate.

Mold is a symptom. In Orleans Parish it usually follows a roof leak, a flooded first floor or years of a closed-up house sitting in wet heat. Sellers often cannot afford the cleanup, and bank buyers will not touch the place. Our asbestos guide matters here too, because older New Orleans houses can hide more than one hazard under the drywall.

Pull a rough scope with our repair cost guide, then run the ARV calculator before you quote a number.

Mold-Damaged Houses in Louisiana at a glance

Statute	Act 807 of 2026, R.S. 37:1448.5 (check current text)
Property covered	Homes with one to four units
Seller cancel right	Five or more calendar days
Deposit	Minimum 1% of the price, escrowed
Seller disclosure form	LREC property disclosure, R.S. 9:3196 to 3198
Penalty exposure	Up to $5,000 per violation

The opportunity

Why mold-damaged houses create deals in New Orleans

New Orleans combines old wood-frame housing, heavy rain, high humidity and a long record of flooding. A shuttered house can grow mold within weeks. Investors target Gentilly, the 7th Ward, New Orleans East and Central City, where renovation budgets can still work. See our motivated seller guide for outreach basics.

Cost-shy owners

Heirs and landlords often cannot fund remediation, so a clean as-is sale is a relief.

Insurance fatigue

Owners in a long claim dispute may accept cash sooner.

Buyer appetite

Rehabbers who already own a remediation crew will pay for a deal that is documented and priced with margin.

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Lead sources

Where to find mold-damaged leads in Orleans Parish

Vacant and boarded houses. Drive Gentilly and the 7th Ward and note tarps, boarded windows and overgrown lots. Our driving for dollars guide shows how to log them.
Code enforcement cases. City blight and cleanup notices point to owners under pressure. See code violation leads.
Absentee owners. Out-of-town heirs rarely know the condition. Start with absentee owner leads.
Failed listings. Houses that sat on the market after an inspection flagged moisture. Try expired listings.
Landlord referrals. Property managers and roofers hear about leaking, abandoned houses first.

Your exit

Who buys mold-damaged houses in Louisiana

Typical buyers are local rehabbers, small landlords and investors who run their own crews. They care about the moisture source and whether the roof is sound. Give them photos and a short scope so they can decide quickly.

Marketing the contract rights is treated by Act 807 as a sign of wholesaling, and a buyer who knows the rules will expect clean paperwork. Some wholesalers prefer to close on their own funds, and our double closing guide explains why simultaneous closings are covered by the Act too.

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Step by step

How to start wholesaling mold-damaged houses in Louisiana

Inspect the damage. Walk the house and photograph stains, soft floors and the likely water source.
Make the written disclosures. Before the contract is signed, give the seller the Act 807 statements in writing and urge legal advice.
Use the required notice. Place the statutory notice by the seller’s signature with the cancel-by date and attach the LREC cancellation form.
Escrow the deposit. Hold at least 1% of the price in a Louisiana escrow account or the seller’s account.
Run your numbers. Use the MAO calculator with a larger repair cushion than normal.
Find the buyer. Pull your list from the buy box guide and send scope notes.
Close properly. Use an investor-friendly title company and keep disclosures in the file.

Your checklist for wholesaling Mold-Damaged Houses in Louisiana

Give every written disclosure before the seller signs.
Count five calendar days and write the cancel-by date at 11:59 PM.
Attach the free LREC mandatory cancellation form.
Hold the 1% minimum deposit in Louisiana escrow.
Never record a lien or anything that clouds title.

A Louisiana example: a flood-stained house in Gentilly

Contract price	$68,000
Deposit in escrow	$1,000
Estimated repairs	$52,000
Estimated ARV	$185,000
Assignment fee	$9,500
Rehabber profit target	About $35,000

This worked example uses a two-bedroom house in Gentilly. An out-of-state heir inherited it after a roof leak and a closed-up summer. Black growth covered the ceiling and the kitchen floor sagged. A bank would not lend on it.

You offered $68,000 and gave the heir the written disclosures, the notice with the cancel-by date and the LREC form. The heir spoke to a Louisiana attorney and did not cancel. You placed $1,000 in escrow, which is above the 1% minimum.

A rehabber with his own crew took the contract for a $9,500 fee and closed through a title company. He paid for remediation, new drywall and a roof patch.

Louisiana rules to know

Louisiana rules for mold-damaged house wholesalers

Act 807 of 2026 added R.S. 37:1431(35)-(37) and R.S. 37:1448.5 to the Real Estate License Law. It reaches one-to-four unit homes. A missing disclosure can make the contract voidable by the seller until title passes, and violations can mean a civil penalty up to $5,000 each.

Wholesalers may not act as the seller’s advisor, claim a license they lack, or file anything that clouds title. R.S. 37:1438 exempts owners, but how that exemption fits Act 807 is an open question, so ask an attorney or the Louisiana Real Estate Commission. Sellers must also receive the state property disclosure under R.S. 9:3196 to 3198, and mold history belongs on it. See our attorney guide.

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Mold deals punish guesswork. In mentorship we review your scope notes, your disclosure packet and your numbers before you sign anything.

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FAQ

Mold-Damaged Houses in Louisiana: common questions

Is wholesaling mold-damaged houses in Louisiana legal?

Generally yes, but it is regulated. Act 807 of 2026 requires written disclosures, a seller cancellation right of at least five calendar days and a deposit of at least 1% for one-to-four unit homes. Violations can make the contract voidable. Check current text and ask a Louisiana attorney before you sign.

Do I have to tell a New Orleans seller I plan to assign?

Yes. Under Act 807 the wholesaler must disclose in writing, before the contract is signed, the intent to assign or resell for a higher price than the seller is offered. The seller must also be told to seek legal advice. Confirm the exact wording in the current statute.

How long can a seller cancel a wholesale contract?

As the Act reads, the seller can cancel for any reason, without penalty, for at least five calendar days after both sides have signed. The contract must state the cancel-by date and time, 11:59 PM, near the seller’s signature. Check current text with an attorney.

Who pays for mold remediation in a wholesale deal?

The end buyer normally pays, because the wholesaler only holds a contract and does not own the house. Price the repair into your offer and fee. Seller disclosure forms under R.S. 9:3196 to 3198 should honestly describe known moisture problems.

Should I record a memorandum of contract in Louisiana?

Be careful. Act 807 bars wholesalers from recording liens or anything else that clouds title. Whether recording the contract itself is allowed is unclear under the Act, so ask a Louisiana attorney before you record any document against a New Orleans house.