Michigan situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in Michigan

Wholesaling fire-damaged houses in Michigan means getting a burned home under contract at a price that reflects the damage, then assigning that contract to a buyer who can rebuild it. Owners in Macomb and Oakland counties often face a smoke-stained shell, an insurance check and a mortgage payment all at once. A calm, honest offer can help them move on. See our fire-damaged house guide for the basics.

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The short answer

Can you wholesale a fire-damaged house in Michigan?

Yes, you can usually contract to buy a fire-damaged home and assign that contract, as long as you are honest about your role and follow Michigan broker law. Check current rules with a Michigan attorney before you start.

Michigan has no separate wholesaler license that we found. The Occupational Code does define a real estate broker broadly, and the definition can reach people who buy or negotiate sales as a principal vocation. Repeated deals can raise that question, so ask a lawyer or LARA how it applies to you. Our license guide goes deeper.

A bill about wholesaling (HB 5366) was introduced in 2025, but it is not law as far as we know. Check its status before you sign anything. A fire also leaves practical questions: who gets the insurance money, what the lender is owed, and whether the city has posted the house. Read our legality guide first.

Fire-Damaged Houses in Michigan at a glance

Wholesaler license	None found in Michigan; broker rules can apply
Seller disclosure	Statutory form asks about structural and other defects
Foreclosure sellers	Many are exempt from the disclosure form
Double close	Two deeds can mean two transfer tax bills
Insurance	Claim money may belong to the owner or lender
Pending bill	HB 5366 introduced 2025; check status

The opportunity

Why burned houses can be good deals

Fire damage scares most buyers, so owners get few offers. In Sterling Heights, Warren and the rest of Macomb County, the lots are decent and the brick ranches are sturdy, which keeps rebuilders interested. If you can show a seller a clear path out, you can often agree on a fair price. Pair your numbers with a quick look at the repair cost guide.

Few competing bidders

Retail buyers skip fire jobs, so a serious investor offer stands out.

Tired owners

Many owners are living elsewhere and would like a clean sale. Our motivated seller guide helps you spot them.

Rebuilder demand

Contractors and rehabbers keep buy boxes for gut jobs in solid neighborhoods.

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Lead sources

Where to find fire-damaged leads in Sterling Heights

Fire department news. Local reports and scanner logs show which addresses burned recently.
Driving routes. Boarded windows and tarps stand out. See driving for dollars.
City notices. Dangerous-building notices can follow. Our code violation guide explains the lead type.
Insurance-weary owners. Some owners give up after a slow claim and want out.
Absentee owners. Landlords with a burned rental often respond to a letter. Try absentee owner lists.

Your exit

Who buys fire-damaged houses in Michigan

Rehabbers and small builders are the usual buyers. They want a clear scope, a fair price and clean title. Send photos, the fire report if the owner has it, and your repair estimate.

Some buyers need the property secured and insured while they plan. A vacant property policy is a common topic. Talk with your buyer early, and use an investor-friendly title company to handle the closing.

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Step by step

How to start wholesaling fire-damaged houses in Michigan

Confirm who can sign. Check the deed, any estate, and whether the lender has a claim on insurance money.
Walk it safely. Do not enter if the structure looks unsound. Bring a contractor when you can.
Build the numbers. Use the ARV calculator for after-repair value and the MAO calculator for your ceiling.
Write the contract. Use assignable wording and disclose your intent. See assignment basics.
Market the deal. Send buyers photos, the scope and the price.
Check title. Order a search early. Our title search guide shows what to look for.
Close. Decide on assignment or a double close, then collect your fee.

Your checklist for wholesaling Fire-Damaged Houses in Michigan

Ask the owner about the insurance claim and any lender notice.
Get a contractor bid before you fix your offer.
Check whether the city has posted a notice on the house.
Put your assignment right in the contract in plain words.
Ask an attorney how Michigan broker rules apply to your deal.

A Michigan example: a brick ranch after a kitchen fire

After-repair value	$265,000
Repair estimate	$78,000
Buyer margin and costs	$52,000
Your contract price	$118,000
Assignment fee	$11,000
Buyer pays total	$129,000

A Sterling Heights owner had a kitchen fire that cooked the back of a brick ranch. The insurer had paid out, but the owner had moved in with family and could not keep paying two housing costs.

You walked it with a contractor and priced the work at about $78,000. After the numbers, you contracted at $118,000 with assignable wording and told the owner you might pass the deal to a rehabber.

A buyer from nearby Warren took the contract for an $11,000 fee. The owner got a clean exit and the house got a new kitchen.

Michigan rules to know

Disclosure, broker law and transfer tax

Michigan’s Seller Disclosure Act covers many sales of one-to-four unit homes. Its statutory form asks about structural, water and other defects, and a buyer who never gets a signed form can generally back out. Some sellers are exempt, including many foreclosure and estate sales. Review our attorney guide and confirm how this applies to your seller.

If you double close, each deed can carry its own transfer tax. Check current state and county rates with the county register of deeds or the Treasury. Read our transfer tax guide before you price your fee.

Learn it with a mentor

Test your repair math

Damaged houses punish bad math. Mentorship students send us their repair bids and comps, and we help them test the offer before a seller ever sees it.

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FAQ

Fire-Damaged Houses in Michigan: common questions

Is wholesaling fire-damaged houses in Michigan legal?

Generally yes when you are honest and follow the broker rules, but ask an attorney how they apply to repeated deals. You can usually contract and assign a fire-damaged home. A wholesaling bill, HB 5366, was introduced in 2025 but is not law as far as we know, so check its status first.

Who owns the insurance money after a fire?

It depends on the policy and the mortgage. Ask the owner and the lender, and let an attorney confirm. Claim money may belong to the owner or the lender, so find out who is owed what before you sign, and do not promise your buyer any claim money.

Does the seller have to fill out a disclosure form?

Many sellers do under the Seller Disclosure Act, though some sales are exempt. Check the statute. The statutory form asks about structural and other defects, and many foreclosure sellers are exempt, so confirm whether your seller must complete it and tell your buyer what you know about the damage.

Can I buy a house the city calls dangerous?

Often, but the city may require repairs or demolition. Ask the building department. A fire also raises the question of whether the city has posted the house, so get the posting or order in writing, and tell your buyer before they commit to a price.

Do I need a license?

Michigan has no wholesaler license we found, but broker rules can apply. Check with LARA or a lawyer. The Occupational Code defines a real estate broker broadly, and the definition can reach people who buy or negotiate sales as a principal vocation, so repeated deals can raise the question.