Wholesaling Fire-Damaged Houses in Louisiana

The short answer

Can you wholesale a fire-damaged house in Louisiana?

Yes, you can contract a burned home and assign it, but Louisiana Act 807 (reported as effective August 1, 2026; confirm on legis.la.gov) requires written disclosures first. In New Orleans, expect insurance, mortgage and city code questions before any buyer closes, so verify each one with an attorney and keep the paperwork.

A fire changes who has a say in the sale. The owner may have an open insurance claim, and a lender can have a right to the claim money. Ask for the claim letter, the fire department report and any city notice before you set a price. Our vacant property insurance guide explains why burned shells are hard to cover.

Your buyer is usually a rehabber who prices in smoke damage, wiring and roof framing. Run the repair side with our repair cost guide, then work backward from the finished value. A fire in an older Orleans Parish home can also expose lead paint and hidden structural harm, so buyers will want an inspection window.

The opportunity

Why burned homes sell in New Orleans

Orleans Parish has many older wood-frame houses, and one kitchen fire can leave an owner with a gutted home and a stack of paperwork. Some owners live elsewhere, some are heirs, and some simply cannot carry a vacant house through months of rebuilding. A clear, fair offer that closes quickly can beat a long insurance fight. Our driving for dollars guide shows how to log boarded shells.

Lead sources

Where to find fire-damaged leads in New Orleans

• City code files. Blight and code cases point to burned homes. See code violation leads.
• Drive-by lists. Boarded windows, blue tarps and char marks on siding are clear signals.
• Out-of-town heirs. Heirs who inherited a burned house often want out. See heirs’ property.
• Mailed letters. Short, kind notes work best. Try yellow letters.
• Skip tracing. Find owners who left the parish with skip tracing.

Your exit

Who buys burned houses in New Orleans

Rehabbers, builders and small landlords with a crew are the usual buyers. They want a clear price, a fair inspection period and a lot with a usable slab or piers. Many also lean on an investor-friendly title company that can handle privileges and liens on a damaged house.

Send buyers photos of the damage, the fire report if the owner shares it, and your repair estimate. A buyer who sees the real scope will not back out late. The assignment guide covers the paperwork.

Step by step

How to start wholesaling fire-damaged houses in Louisiana

1. Gather the facts. Ask for the fire report, claim status, mortgage balance and any city notice.
2. Disclose in writing. Before signing, give the Act 807 notices on intent to assign, legal advice and the cancel right.
3. Price from the repair side. Use the ARV calculator and the MAO calculator.
4. Use the right paperwork. Attach the LREC cancellation form, add the notice by the signature line and set an escrowed deposit.
5. Open an inspection window. Give buyers time to check framing and wiring, as our inspection contingency guide explains.
6. Find the buyer. Market only to people who can close. Start with cash buyers.
7. Close with title. Choose a title company that is comfortable with fire-loss files and any open claim.

This worked example uses made-up numbers. A Gentilly owner moved to Houston after a kitchen fire and left the house boarded for eight months. You wrote down the open claim, gave the Act 807 notices in writing and signed at $88,000 with a $1,000 escrow deposit.

Your repair bid came to $72,000, and a rehabber confirmed it after a walk-through. Using a 70% rule on a $235,000 finished value, the buyer’s ceiling was near $92,500. You assigned the contract for $12,500 above your price. The owner waited out the five-day cancel window, and the deal closed three weeks later.

Louisiana rules to know

Act 807 and fire-loss rules in Louisiana

Louisiana Act 807 of 2026 (HB 468) adds R.S. 37:1448.5 to the License Law for 1-4 unit homes, so a burned house falls inside it. Before each contract you must disclose in writing that you plan to assign for a higher price, that the seller should get legal advice, and that the seller can cancel for at least five calendar days. The Act reads that a deposit of at least 1% of the price must be held in escrow. Check current text.

Burned houses add a second layer. Seller disclosure rules in R.S. 9:3196-3198 may apply, and fire history is the kind of fact you should put in writing. Do not promise the owner anything about their insurance claim, and do not act as their advisor. See our attorney guide and the legality overview.

Learn it with a mentor

Price burned houses with confidence

Fire-loss deals have more moving parts than a plain vacant house. Mentorship students send us repair bids and contract drafts, and we help them check the math and the disclosure steps before they sign.

FAQ

Fire-Damaged Houses in Louisiana: common questions

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