Colorado situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in Colorado

Wholesaling fire-damaged houses in Colorado means putting a burned home under contract at a discount and assigning that contract to a buyer who can handle the rebuild. The owner is often worn out by claims, contractors and a vacant shell. A calm, written offer can feel like relief. Our fire-damaged house guide covers the basics, and this page adds the Colorado details.

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The short answer

Can you wholesale a fire-damaged house in Colorado?

Yes, in most cases. You contract as the buyer, then assign or resell your contract rights. Colorado has no wholesaling statute that we could find, so check current rules and ask an attorney.

Colorado law defines a broker broadly, and the definition mentions option dealers. Many wholesalers rely on the exclusion for a person who acts as a principal in acquiring real estate, found in C.R.S. 12-10-201(6)(b)(IV). Treat that as a starting point, not a guarantee. Read our legality guide and our license rules guide.

Fire cases add a second layer. The house may carry an open insurance claim, a mortgage with a payoff, contractor bills or a city notice. Ask the seller who holds each one before you sign. Our assignment guide shows how your contract rights pass to the next buyer, and a short call with the Division of Real Estate or an attorney is cheap insurance.

Fire-Damaged Houses in Colorado at a glance

Licensing	No wholesaling statute found; principal-buyer exclusion in C.R.S. 12-10-201
Seller disclosure	Colorado commission forms include a residential seller disclosure
Insurance	Open claims and payouts may belong partly to the lender
Condition	Smoke, water and structural damage often hide behind drywall
City rules	Burned homes may need permits and inspections before reuse
Foreclosure	Owner-occupants behind on payments trigger extra protections

The opportunity

Why wholesaling fire-damaged houses in Colorado works

Longmont sits in Boulder and Weld counties, and the Front Range has plenty of older ranch homes with aging wiring and furnaces. Add dry winters and wind, and fires happen. Wildfire also reshaped nearby Louisville and Superior in the Marshall Fire. Most owners want out fast. Retail buyers avoid soot, odor and unknown structure, so a discount is normal. Cash buyers with crews look for exactly this. Use our motivated seller guide to set your approach.

Tired owners

Many are done with claims paperwork. See our negotiation guide.

Thin buyer pool

Few retail buyers want a burned home, so your cash buyers face less competition.

Repair skills

Contractors pay for deals they can scope. Show a bid with the repair cost method.

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Lead sources

Where to find burned homes in Colorado

Drive the neighborhoods. Boarded windows and tarps stand out. Try a driving for dollars route.
Fire department reports. Local fire districts and news stories can point to recent losses.
Code violation lists. Cities track unsafe buildings. See code violation leads.
Absentee owners. Landlords who lost a rental may sell quickly. See absentee owner leads.
Owner records. Look up the owner with our owner search guide.

Your exit

Who buys fire-damaged homes in Colorado

Rehab investors and builders are the core buyers. Some flip the house. Others tear it down and build new. Ask each buyer what scope they will take, because some will not touch a structural fire. Our buy box guide explains how to match deals to buyers.

Funding matters too. Burned homes rarely qualify for standard loans, so buyers usually pay cash or use hard money. Line up your investor-friendly title company early, since liens and claims show up in the title work.

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Step by step

How to start wholesaling fire-damaged houses in Colorado

Walk the property safely. Stay out of unsafe areas and photograph everything from outside if the structure looks weak.
Ask about the claim. Find out whether the owner filed insurance, received money or has a lender involved.
Run the numbers. Use the ARV calculator and the MAO calculator with a conservative repair budget.
Sign an assignable contract. Use wording that allows assignment. See the memorandum guide.
Order title early. Check for liens, unpaid contractors and an open mortgage.
Market the contract. Send photos and a repair scope to buyers from your cash buyer list.
Close. Close through title, using double close or assignment as your attorney advises.

Your checklist for wholesaling Fire-Damaged Houses in Colorado

Confirm the owner on the deed and who else holds an interest.
Ask for the insurance claim status in writing.
Tell the seller you are buying as a principal and may assign.
Check the city or county for permits, notices and demolition orders.
Never promise repairs or sell the house as a broker.

A Colorado example: a Longmont kitchen fire

Pre-fire value	$520,000
Estimated repairs	$135,000
Your contract price	$255,000
Buyer pays you	$270,000
Assignment fee	$15,000
Time to close	24 days

A Longmont couple had a kitchen fire that gutted the back half of their ranch. Their insurer paid a partial claim, and a mortgage still sat on the home. They were tired of living with relatives.

You walked through with a contractor, priced the work at $135,000 and signed at $255,000, subject to payoff figures from the lender. Your own check used the ARV and MAO tools.

A rehab buyer from Boulder County paid $270,000 for the contract. You kept $15,000, and the seller walked away with a clean payoff and no more repair stress.

Colorado rules to know

Colorado rules for wholesaling fire-damaged homes

We found no Colorado statute that regulates wholesaling directly, but please check current text. Colorado also has the Foreclosure Protection Act, C.R.S. 6-1-1101 and following. If the owner lives in the house and is behind on the mortgage, you may be an equity purchaser, and cancellation rights can apply for a few business days. Ask an attorney before you proceed. Denver has a proposed wholesaler ordinance, but it is only a proposal and Longmont is not Denver.

Disclose in writing that you are a buyer who may assign. A burned house can also hold hazards such as asbestos or damaged gas lines, so share what you know. Our asbestos guide and attorney guide help here.

Learn it with a mentor

Learn to scope fire deals

Wholesaling fire-damaged houses in Colorado rewards people who can read a repair scope. Mentorship students send us photos and numbers, and we help them decide what to offer.

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FAQ

Fire-Damaged Houses in Colorado: common questions

Is wholesaling fire-damaged houses in Colorado legal?

Generally yes when you act as a principal and follow current rules. We found no Colorado wholesaling statute, so confirm with an attorney. Many wholesalers rely on the principal-acquirer exclusion in C.R.S. 12-10-201(6)(b)(IV), but treat it as a starting point, not a guarantee.

Who owns the insurance money?

It depends on the policy and the mortgage. Lenders often have rights to claim payments, so ask for a payoff and claim status. In the Longmont example, the insurer paid a partial claim and a mortgage remained, so the contract depended on payoff figures from the lender.

How do I price a burned house?

Start with after-repair value, subtract realistic repairs, buyer profit and your fee. Get a contractor to walk it. Smoke, water and structural damage often hide behind drywall, so keep the repair budget conservative, as the Longmont walk-through did at 135,000 dollars.

Can I assign my contract?

Often yes if the contract allows it. Put assignment language in writing before you sign, and tell the seller you are buying as a principal and may assign. Rehab investors and builders are the core buyers, and burned homes usually need cash or hard money.

Do I need a license?

Colorado licenses brokers. Wholesalers generally contract as principals, but ask the Division of Real Estate or an attorney. Never sell the house as a broker or promise repairs. If the owner lives there and is behind on the mortgage, the Foreclosure Protection Act may apply.