Wholesaling Fire-Damaged Houses in Georgia

The short answer

Can you wholesale a fire-damaged house in Georgia?

Yes, if you work around the insurance claim and any mortgage. The owner decides whether the claim stays with them or moves with the sale.

A fire usually brings an insurer, a mortgage lender, sometimes a contractor and the city into the picture. Each one can affect your deal. Ask the owner what has been filed, what was paid and what is owed. Ask too whether the family has a place to stay, because stress and timing shape how fast they can decide. A patient, practical tone does more here than a hard sell. Our fire-damaged house guide covers the basics.

Look closely at the structure. Fire damage often hides in the framing, wiring and roof, and water from hoses can cause mold. Do not guess at repair costs. Use our repair cost guide and bring a contractor if you can.

The opportunity

Why fire-damaged houses create deals in Savannah

After a fire, owners often face two payments at once: the mortgage and temporary housing. Some do not want to manage a rebuild. Investors who can handle repairs see value in a lot and a shell. Savannah’s rising prices and tight inventory help. Chatham County buyers who know the older neighborhoods are often willing to take on a shell if the numbers hold, and a few will look at a teardown if the lot is sound. Our condemned house guide explains what happens when a city declares a home unsafe.

Lead sources

Where to find fire-damaged leads in Georgia

• Fire department reports. Public incident records may show recent fires; check what your county releases.
• Driving for dollars. Look for boarded windows and tarps. See driving for dollars.
• Code enforcement. Unsafe structure notices often follow fires.
• Insurance adjusters and contractors. Local pros know who is stuck.
• Neighbors. People on the block know which house burned and who owns it.

Your exit

Who buys fire-damaged houses in Georgia

Rehabbers with contractor teams and builders who want a lot are the buyers. Cash is common, since lenders often will not finance a home in this condition. Some buyers also want the insurance claim assigned, but that depends on the policy and the lender.

Give buyers photos, the loss date, claim status and any city notices. Use the ARV calculator to explain the finished value, and our ARV guide to explain the method.

Step by step

How to start wholesaling fire-damaged houses in Georgia

1. Get the facts. Ask about the fire date, claim status and mortgage balance.
2. Check ownership. Confirm who is on the deed and whether a lender or lien exists.
3. See the property. Walk it only with permission and wear the right gear.
4. Estimate repairs. Add structure, systems, roof and mold to the budget.
5. Set the offer. Use the MAO calculator with a repair cushion.
6. Sign with disclosure. Use a contract with assignment language and attorney review.
7. Close and pay off. The attorney pays liens and the mortgage from the proceeds.

A family had a kitchen fire during the holidays and chose to move closer to relatives instead of rebuilding. Their insurer paid part of the claim, and the mortgage still needed to be paid off.

You gathered three comparable sales and a contractor’s rough estimate. You signed at $150,000, with a payoff letter from the lender and an assignment clause. The owners’ lawyer reviewed it. You also told the buyer up front that the roof and second floor framing were scorched, so nothing in the walk-through came as a surprise.

A rehabber who works in the older neighborhoods paid $162,000. Your fee was $12,000, and the attorney paid off the mortgage at closing.

Georgia rules to know

Georgia insurance, permits and payoffs

Insurance claims belong to the policyholder, and the mortgage lender is usually on the check. If the owner has already received money, ask what it covered. If the claim is open, a lawyer should explain whether it stays with the seller or transfers. Do not promise the buyer insurance money unless the policy and lender say so in writing. If the house is also behind on its mortgage, the lender may start the power of sale process, so ask early whether a notice has been sent.

Repairs generally need local permits, and damaged houses may be subject to unsafe building rules. In parts of Savannah, historic review may apply to exterior work, so check with the city. Our certificate of occupancy guide explains why a finished house still needs approval before anyone moves in.

Learn it with a mentor

Learn to price damaged houses

Damage can be scary. Our students send photos and scopes, and we help them estimate repairs, spot hidden problems and write safe contracts.

FAQ

Fire-Damaged Houses in Georgia: common questions

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