Wholesaling Condemned Houses in Colorado

The short answer

Can you wholesale a condemned house in Colorado?

Usually yes, as long as you act as a principal and your buyer fully understands the orders, whether the path is repair or demolition, and the risks involved. Obtain the city’s order in writing every time.

No statute aimed at wholesalers surfaced in our Colorado research. In practice, people point to C.R.S. 12-10-201(6)(b)(IV), the exclusion for someone acquiring as a principal, while option deals get little guidance. Gray areas are laid out in the legality guide; before you assign a condemned property, ask a lawyer to confirm what the text says today.

Condemnation is a local order, not a state label. Arvada and Jefferson County each have their own building officials and processes. Ask exactly what was ordered, whether the house must be vacated, repaired or demolished and what permits a buyer would need. Pair that with a title search and a look at vacant property insurance.

The opportunity

Why wholesaling condemned houses in Colorado is niche

Arvada has older neighborhoods near Olde Town, with mixed brick and frame homes, and parts of Jefferson and Adams counties where fire, water or neglect have left houses unsafe. Owners with a condemned house face daily costs and no easy exit. Investors who rebuild or sell lots can make these deals work, and some will pay for land value alone. A highest and best use mindset helps, and our zombie property guide shows related cases.

Lead sources

Where to find condemned house leads in Colorado

• City and county records. Building departments may list unsafe structures. Ask what is public.
• Fire and flood cases. Damaged houses often end up condemned. See the fire-damaged house guide.
• Heirs. Families may inherit a house they cannot use. Try heirs’ property leads.
• Tax lists. Owners often stop paying taxes. See tax delinquent lists.
• Driving routes. Red tags and fences show on a driving loop.

Your exit

Who buys condemned houses in Colorado

Builders, experienced rehabbers and land buyers are the usual targets. They need the order, the structure details and a clear view of permits. Lenders usually stay away, so assume cash and build in time for the city’s responses.

Some buyers will tear the house down; others will rebuild. Permits and a clean title are required either way. To protect your fee, use the assignment guide and the title company guide, and file every letter from the city in your deal folder.

Step by step

How to start wholesaling condemned houses in Colorado

1. Get the order. Ask the owner for the notice and ask the city what it requires.
2. Check the title. Look for liens, fines and unpaid taxes before you commit.
3. Price the outcome. Use the ARV calculator and the MAO calculator for rebuild or repair.
4. Write the contract. Include an inspection window and permission to talk to the city.
5. Disclose your role. Tell the seller you are a buyer and may assign.
6. Find a cash buyer. Use our cash buyer guide and share the order.
7. Close at title. Close with an investor-friendly title company.

An Arvada family owned a 1950s house near Ralston Road that was posted unsafe after a roof collapsed. They lived elsewhere and could not pay for repairs. Two agents declined to list it.

You called the city, got the order and learned the structure could be cleared with permits. A nearby comp showed a cleared lot at about $260,000. With $28,000 for demolition and a margin, you offered $165,000.

A builder agreed to $173,000, paid you $8,000 at closing and pulled permits. The family avoided more fines, and you never entered the structure.

Colorado rules to know

Licensing, orders and safety

We found no wholesaler registration requirement in Colorado. Advertising the property itself, or working on the owner’s behalf for a fee, can resemble brokerage. Read the license guide, then put the question to the DORA Division of Real Estate or an attorney.

The city or county issues these orders. Whoever buys may take on the orders, any fines and the deadlines attached, so verify each with the city. Should someone still be living inside, Title 13, Article 40 eviction steps and HB24-1098 could come into play; check the final text. An owner-occupant who has fallen behind on the mortgage may also be covered by the Foreclosure Protection Act. Cash for keys is one way to handle an occupied unit.

Learn it with a mentor

Know when to walk away

Not every condemned house is worth chasing. Mentorship students share city orders and photos with us, and we sort out which ones to pursue and which to drop.

FAQ

Condemned Houses in Colorado: common questions

Keep going

More Colorado wholesaling guides

Read the full Colorado wholesaling guide or pick another situation below.

Guides that go deeper