Wholesaling Flood-Damaged Houses in Louisiana

The short answer

Can you wholesale a flood-damaged house in Louisiana?

Yes, you can contract and assign a flooded home, but you must follow Act 807 and be honest about water history. In Baton Rouge, check the flood zone and permit rules before you promise a buyer anything, and put every disclosure in writing.

Water damage is not one problem. A foot of floodwater that sat for two days differs from a slow roof leak, and buyers will ask which one they face. Photograph the waterline, the drywall and the floors. Our asbestos guide matters too, because older flooded homes may have materials that need testing before demolition.

Flood zone status affects what a buyer can build. Parish floodplain rules may limit repairs after heavy damage or require raising the structure, so ask the permit office before you price the job. Mold follows quickly, so our repair cost guide and a contractor visit belong in your plan.

The opportunity

Why flooded homes sell around Baton Rouge

After the 2016 flood, thousands of owners across East Baton Rouge and Livingston Parishes rebuilt, sold or walked away. Some houses still carry damage, deferred repairs or old claim disputes. Owners with a second flood scare or a tired roof often want out. A fair cash offer with a clear timeline can help them move on, and rebuilders in the suburbs keep looking for lots that pencil out.

Lead sources

Where to find flood-damaged leads in Baton Rouge

• Parish permit records. Late repair permits flag half-finished flood repairs. See code violation leads.
• Drive-by lists. Watch north Baton Rouge streets near Scotlandville. Our driving guide helps.
• Absentee owners. Owners who left after a flood may still hold the deed. See absentee owner leads.
• Insurance-weary owners. Ask who is still waiting on claim money or a repair loan.
• Direct mail. Use plain, kind letters. Direct mail still works.

Your exit

Who buys flooded houses near Baton Rouge

Rebuilders, landlords who rent to LSU students and local builders are the usual buyers. They ask three questions: what is the flood zone, what will the permit office allow, and how fast can I close. Answer all three in your buyer package.

A buyer in a high-risk zone will count flood insurance as part of the budget, so share what you know and tell them to quote coverage. Keep a due diligence period in the contract so they can inspect. An investor-friendly title company helps with open privileges.

Step by step

How to start wholesaling flood-damaged houses in Louisiana

1. Check the flood zone. Look up the property on the parish and federal flood maps before you offer.
2. Ask about water history. Get dates, depth, claims paid and repairs finished or skipped.
3. Give written notices. Provide the Act 807 disclosures and cancellation form before the seller signs.
4. Price the job. Run the ARV calculator and the MAO calculator with a contractor bid.
5. Build in a due diligence window. Let the buyer inspect for mold, wiring and structure.
6. Market the contract. Reach buyers through buy boxes, not public ads that overstate the property.
7. Close and record. Close through title and keep every signed notice in the file.

Here is a worked example with illustrative numbers. An owner near Denham Springs had finished some flood repairs years ago but left the kitchen and baths undone. You gave the written notices, attached the cancellation form and signed at $102,000 with a $1,020 escrow deposit.

A builder looked at the house, checked the flood zone and confirmed a $58,000 repair budget. On a $245,000 finished value, he agreed to pay $111,000. You earned a $9,000 assignment fee. The owner kept the cancel right through the five-day window and then closed with no complaints.

Louisiana rules to know

Act 807 voidability and water-damage disclosures

Act 807 gives the seller strong remedies. As the Act reads, a missing disclosure or other violation makes the contract voidable by the seller at any time before title transfers, and a civil penalty of up to $5,000 per violation can follow. You also may not record any lien or encumbrance or otherwise cloud the title.

On the property side, R.S. 9:3196-3198 on seller disclosure may apply to a sale of a flooded home, and flood history is a fact you should treat carefully. Hidden-defect claims can also arise under Louisiana’s sales law. A Louisiana attorney can tell you how those pieces fit together. Our attorney guide explains how to hire one.

Learn it with a mentor

Read flood risk before you sign

Water deals look cheap and can turn expensive fast. Mentorship students show us the flood map, the permit file and the repair bid, and we help them decide whether the deal is safe.

FAQ

Flood-Damaged Houses in Louisiana: common questions

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