Wholesaling Condemned Houses in Tennessee

The short answer

Can you wholesale a condemned house in Tennessee?

Generally yes. A condemned-home contract can be assigned when the disclosure rules are followed and the local order permits a sale. Study the condemnation order before naming a price.

Resale of a contract at a profit is what Tennessee’s 2025 act regulates, and a condemned house is treated like any other. In the agreement, in bold and large print, state before signing that you may market your interest. The seller should then be told the effective date at least three business days before you assign. Our legality guide and assignment guide cover the details.

Condemned status is set locally, so the order itself is your first document. It should say what the problem is and what the owner must do. A condemned house may be tied to unpaid taxes, a fire or neglect. Read our condemned house guide and check whether the home is also facing foreclosure or a tax sale before you offer.

The opportunity

Why wholesaling condemned houses in Tennessee works

Condemned homes scare away most buyers, lenders and agents. Owners often see them as a liability that costs money every month. In Memphis, buyers who know the neighborhoods and have crews may pay for a home that can still be saved, or for a lot with value. Your job is not to guess. It is to confirm the order, the title and the likely cost, then bring the numbers to a serious buyer.

Lead sources

Where to find condemned house leads in Tennessee

• Public records. Ask your local codes office what is public about unsafe structure cases.
• Tax delinquent lists. Neglected homes often owe taxes. See tax delinquent lists.
• Driving routes. Look for boarded doors and posted notices. See driving for dollars.
• Vacant and zombie homes. Empty houses with no owner contact are common. See zombie properties.
• Fire damage. Burned homes can be condemned after a loss. See fire-damaged house guide.

Your exit

Who buys condemned houses in Memphis

Experienced rehabbers, demolition contractors and builders are your likely buyers. Each wants a different answer to one question: can the structure be saved? Ask each buyer about their plan before you send a deal.

Share the order, the title notes and any inspection photos. A buyer who finds surprises after assignment will not return. If the buyer plans to reopen the home, they will need to resolve the order with the local government, which can take time.

Step by step

How to start wholesaling condemned houses in Tennessee

1. Get the order. Read the condemnation notice and any deadlines.
2. Run title. Look for liens, taxes and a pending sale. Use the title search guide.
3. Price the plan. Estimate repair or demolition cost. See estimating repair costs.
4. Run the numbers. Plug the deal into the ARV calculator and the MAO calculator.
5. Disclose and sign. Put the bold, large-print statement of your plan to market the contract in front of the seller before they sign.
6. Find the buyer. Send the order and numbers to buyers who handle unsafe homes. See writing an offer.
7. Notify and close. Let the seller know the assignment date three business days early, and close at an investor-friendly title company.

A Frayser bungalow in Memphis had a posted notice, a collapsed rear porch and no active utilities. The heirs lived in another city and did not want to spend more.

The notice you read listed required repairs, and a title search turned up $4,800 in back taxes with no other liens. One contractor called the structure repairable for roughly $62,000, with comps after the work near $135,000. You contracted at $41,000 and put your intent to assign in bold.

The local rehabber who bought the contract paid you $7,500. Before the assignment took effect, the heirs were sent the date in writing with three business days to spare; at closing the title company handled the taxes, and the deed tax cost the buyer about $150.

Tennessee rules to know

Orders, tax sales and disclosure rules

Specific written disclosures and an assignment-date notice are what Tennessee’s 2025 wholesaling statute demands. Read as enacted, it names no cancellation right or penalty, and any action must be brought within two years of contract execution. Missed steps can still create problems under general law, and brokering without a license is unlawful in Tennessee, so stay clearly a principal buyer. Because the real estate commission’s position on assignments is unconfirmed, ask counsel.

Look at tax sale exposure. Tennessee’s tax sale law generally gives a right to redeem after a confirmed sale, and for vacant or abandoned property the window can shrink from a year to as little as thirty days, with 12% annual interest on the purchase price. Skip any purchase of a redemption right without legal advice, since courts may turn away transferees who look like speculators. The tax lien vs tax deed guide compares the two.

Learn it with a mentor

Know the order before you know the price

Condemned deals turn on what the paperwork shows. Students hand us the orders and title notes, and we talk through whether the risk justifies the deal.

FAQ

Condemned Houses in Tennessee: common questions

Keep going

More Tennessee wholesaling guides

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

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