Louisiana situation guide · Updated November 2026

Wholesaling Code Violation Properties in Louisiana

Wholesaling code violation properties in Louisiana means contracting on a house that has drawn city citations, often in Shreveport, then assigning the contract to a buyer who can cure them. Act 807 of 2026 (reported as effective August 1, 2026; confirm on legis.la.gov) requires written disclosures to the seller first, and you should research the fines before you quote a price.

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The short answer

Can you wholesale code violation properties in Shreveport, Louisiana?

Yes, in most cases. A Shreveport wholesaler can put a cited property under contract and resell the contract, provided the 2026 wholesaling statute (R.S. 37:1448.5) is followed: advance written notices, a cancellation window for the seller and an escrowed deposit. Check current text and open city fines. Open citations affect price, so confirm them before you make an offer.

A code violation is a city notice that a property fails a local standard. Typical items include tall grass, broken windows, unsafe porches and trash. Fines can pile up, and some cities clean a lot and bill the owner. Owners who cannot pay often prefer selling. Our code violation leads guide explains where those records come from.

Your first job is to learn what is owed and what is required. Ask the city office what is open, what deadlines exist and whether a hearing is set. Then size the repair with our repair cost guide and test the offer with the MAO calculator. Do not promise the seller that the city will drop the fines.

Code Violation Properties in Louisiana at a glance

Statute	R.S. 37:1448.5, added by the 2026 session (verify text)
Homes covered	Properties with up to four dwelling units
Seller’s exit	No-penalty cancellation for several calendar days
Earnest money	One percent of price or more, escrowed
Fines and liens	Pull city records before pricing the offer
Title	Nothing may be recorded that clouds it

The opportunity

Why code violation properties create deals in Shreveport

Shreveport is a lower-priced market, which means a modest repair bill can swallow an owner’s whole equity. Caddo Parish neighborhoods such as Highland, Cedar Grove, Allendale and Queensborough have older homes where deferred maintenance leads to notices. Across the river, Bossier City has a different market feel. Buyers who work on tight margins will pay for a lead that already has a clear scope. Our off-market properties guide helps you source more of them.

Fine fatigue

Owners tired of notices may sell for relief. A calm, honest approach works better than pressure, see finding motivated sellers.

Low entry prices

Cheap houses mean small checks, so more buyers can compete for a cleaned-up deal.

Documented fixes

A buyer with a written cure plan can often work with the city. Our certificate of occupancy guide explains why that matters.

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Lead sources

Where to find code violation leads in Caddo Parish

City enforcement records. Ask for open cases and read addresses against your driving list. See driving for dollars.
Tax delinquent houses. Owners who skip repairs may skip taxes too. Try the tax delinquent lists.
Out-of-town owners. Landlords miss notices mailed to the property. Start with absentee owner leads.
Vacant homes. Boards, tall grass and stacked mail show distress, and zombie property cases often start this way.
Neighbor calls. Neighbors tired of an eyesore are a reliable lead source.

Your exit

Who buys code violation properties in Louisiana

Buyers are rehabbers, landlords and local contractors who know how to deal with city inspectors. They will ask what is cited, what has been cleared and whether any lien is recorded. Give them the case numbers and your own notes on deadlines, so they can price risk.

You are selling a contract and a plan, not a clean house. Be clear that you do not control the city process. If a seller wants a simultaneous closing, review our double closing guide, since Act 807 treats certain double closings as wholesaling.

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Step by step

How to start wholesaling code violation properties in Louisiana

Pull the file. Ask the city for open cases, fines and hearing dates on the address.
Check title. Search for liens with our title search guide.
Give the notices. Hand over the written resale and legal-advice statements before any signature.
Mark the deadline. Print the last-chance cancellation time beside the seller’s signature and enclose the state form.
Escrow earnest money. Park one percent or more of the price with a Louisiana escrow holder.
Package the deal. Share citations and photos with buyers from your list.
Close with title. Use an investor-friendly title company that pays off any lien from proceeds.

Your checklist for wholesaling Code Violation Properties in Louisiana

Collect the city case numbers and the amount owed.
Tell the seller you cannot promise any fine reduction.
Deliver the written notices ahead of the signature.
Keep the earnest money in escrow, one percent minimum.
Never place a lien or any cloud on title yourself.

A Louisiana example: a cited house in Highland

Contract price	$41,000
Deposit in escrow	$500
Open city fines	$3,800
Repair estimate	$24,000
Estimated ARV	$98,000
Assignment fee	$6,000

In this worked example, an owner of a rental in Highland let it sit vacant after a tenant left. Notices about the roof and the yard arrived, and fines reached $3,800. She lived in another parish and did not want to deal with it.

You offered $41,000 and handed her the written notices, with the last-chance cancellation time printed by her signature and the state form stapled on. Your $500 earnest money went to escrow. She did not cancel. Title work showed the fine as a city charge, payable from proceeds.

A local rehabber paid a $6,000 fee, fixed the roof, cleared the yard and brought the house into compliance. In this illustration the seller was free of the property and the buyer had a clear plan.

Louisiana rules to know

Louisiana law for code violation wholesaling

The 2026 session added R.S. 37:1448.5 to the Real Estate License Law, and it requires the wholesaler to say in writing, before the seller signs, that the contract may be resold for more, and to recommend legal advice. A cancellation right of at least five calendar days follows.

The statute bars recording any lien or encumbrance or otherwise clouding title, and both the Attorney General and the Real Estate Commission can enforce it. City fines and liens are separate local matters, so ask for a payoff. Sellers must also supply the state property disclosure under R.S. 9:3196 to 3198. Our attorney guide explains what to ask counsel.

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Research before you offer

City records can change a deal’s math. In mentorship we help you read citations, size fixes and set a safe offer.

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FAQ

Code Violation Properties in Louisiana: common questions

Is wholesaling code violation properties in Louisiana legal?

Generally yes, but it is regulated. The 2026 statute covers homes with up to four units and requires written notices, a seller cancellation right and an escrowed deposit. A Louisiana attorney can confirm what applies. Check current text, and confirm local fines with the city.

Do code fines follow the house in Shreveport?

They can. Unpaid city charges may become liens that a title company will want paid at closing. Ask the city for a payoff and search title before you price an offer. Do not assume fines disappear when the house sells.

Can I promise the seller the city will waive fines?

No. You do not control the city process, and a promise you cannot keep could create unfair trade practice risk under the wholesaling statute. Tell the seller what is owed, explain that the buyer will deal with the city, and put key terms in writing.

Who fixes the violations after closing?

The end buyer does, since the wholesaler only holds a contract. Share citation details with buyers early so they can price the repairs and any deadlines. A buyer with a written cure plan usually finds the city easier to work with.

What if I find a lien during title search?

Tell the seller, adjust the price if needed and plan payoff at closing through a title company. Do not record your own lien or anything that clouds title, because the statute bars it. Ask a Louisiana attorney when the payoff is unclear.