Tennessee situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in Tennessee

Wholesaling fire-damaged houses in Tennessee means putting a burned home under contract at a discount and assigning that contract to a rehabber or builder. Owners are often worn out by adjusters, contractors and a mortgage on a house they cannot live in. A calm offer with a clear closing date can be a relief. Tennessee now has a wholesaling statute, so your paperwork has to say what you are doing. Start with our fire-damaged house guide.

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The short answer

Can you wholesale a fire-damaged house in Tennessee?

Yes, if you follow the 2025 written disclosure rules and do not act as an unlicensed broker. Ask a Tennessee attorney to review your contract and assignment forms.

A fire changes who has a say in the sale. The owner, the mortgage lender and the insurance company can all have claims on the money. Before you sign, ask whether a claim is open and whether the lender is listed on any check. Our motivated seller guide shows where these owners tend to turn up.

Tennessee’s wholesaling law, T.C.A. 66-4-401 to -403, applies when you assign your equitable interest for a higher price. You disclose in writing, in bold large print inside the contract, that you intend to market that interest. Notice of the assignment date goes to the seller at least 3 business days ahead. Read our assignment guide and have counsel check the current text.

Fire-Damaged Houses in Tennessee at a glance

Wholesaling law	T.C.A. 66-4-401 to -403 (2025)
Seller disclosure	Usually owner statement or “as is” waiver
Deed recordation tax	$0.37 per $100, paid by the buyer
Claim time limit	Wholesaling actions within 2 years of contract
Brokerage law	T.C.A. 62-13-301 bars unlicensed brokerage
Main hazard	Open insurance claims and lender interests

The opportunity

Why fire-damaged houses are a niche in Tennessee

Davidson County has older frame homes in East Nashville, Madison and Antioch, and a lot of them sit beside newer infill. A burned shell on a good lot is attractive to builders who want the land and not the structure. Sellers who lack the cash or the patience to rebuild may take a fair price. Our repair cost guide helps you price the work before you offer.

Builders want lots

Infill builders in Davidson County often value the land above the burned house.

Tired owners

Months of claims can push owners to sell. Our off-market guide covers finding them.

Less retail competition

Most buyers on the open market skip burned homes, so you face fewer bids.

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Lead sources

Where to find fire-damaged leads in Nashville

Fire department activity. Local news and public incident reports point to recent structure fires.
Driving routes. Boarded windows and tarps stand out. Try driving for dollars in older neighborhoods.
Codes complaints. Metro codes notices on unsafe structures can mark an owner who needs a way out. See code violation leads.
Absentee owners. Landlords who live elsewhere often want out fast. Read about absentee owner leads.
Mail to owners. Use county property records to find the owner of record, then send a plain letter.

Your exit

Who buys burned houses in Tennessee

Rehabbers with their own crews, builders who plan a teardown and landlords with a repair budget are typical buyers. Show them photos, the lot size and a repair range, not only the price. Build your list early with our cash buyer guide.

Most buyers need a title company that understands claims and liens. An investor-friendly title company will check for judgments, mechanic’s liens and open permits before closing.

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Step by step

How to start wholesaling fire-damaged houses in Tennessee

Qualify the seller. Ask about the claim, the lender, the payoff and who owns the home.
Walk the site safely. Do not enter a damaged structure. Photograph from outside unless a professional clears it.
Estimate repairs. Use the ARV calculator and get a contractor’s range.
Set your number. Work backward with the MAO calculator.
Sign with disclosures. Put the Tennessee wholesaling disclosure in bold large print inside the contract.
Market the contract. Offer the deal to buyers on your list. See our offer guide.
Give notice and close. Send the assignment date notice at least 3 business days before it takes effect, then close at title.

Your checklist for wholesaling Fire-Damaged Houses in Tennessee

Confirm whether an insurance claim is open.
Identify the lender and any payoff owed.
Check for liens and open code actions.
Disclose your intent to assign in bold large print.
Have a Tennessee attorney review the forms.

A Tennessee example: a burned duplex off Gallatin Pike

Seller price	$185,000
Estimated land value	$240,000
Repair or rebuild range	$150,000 to $175,000
Assignment fee	$12,000
Buyer type	Nashville infill builder
Time to close	31 days

A Madison owner had a duplex with a kitchen fire that gutted the back unit. The claim was paid, the loan was nearly clear, and she was tired of the contractor calls.

You signed at $185,000 and put the intent to assign in bold type in the contract. A builder who liked the lot walked it and agreed to take your position at the new price.

You sent the 3-business-day assignment notice, the title company confirmed the payoff, and you collected $12,000 at closing. The seller left with cash and no more repairs.

Tennessee rules to know

Tennessee’s wholesaling law and disclosures

Tennessee’s 2025 wholesaling law is short. You disclose in writing to the seller, before the contract is signed, that you intend to market your equitable interest, and you disclose the nature of that interest to the assignee. The text does not state a cancellation right or a penalty, but remedies can still come from general law. Check the current statute.

Brokerage licensing is a separate issue. T.C.A. 62-13-301 bars unlicensed brokerage, and the Real Estate Commission’s view of assignments is not confirmed here. Describe yourself as a buyer of the contract, not a listing agent, and speak with a lawyer. See our legality guide.

Learn it with a mentor

Get help with a damaged-property deal

Burned homes mix claims, liens and repair math. Mentorship students send us their paperwork and numbers, and we help them find the problems early.

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FAQ

Fire-Damaged Houses in Tennessee: common questions

Is wholesaling fire-damaged houses in Tennessee legal?

Yes, when you follow the 2025 disclosure law and avoid acting as an unlicensed broker. You disclose in writing, in bold large print inside the contract, that you intend to market your equitable interest, and notice of the assignment date goes to the seller at least 3 business days ahead. Check current rules with an attorney.

Who gets the insurance money after a fire?

It depends on the policy and the mortgage. A lender is often named on claim payments, so ask early. Before you sign, ask whether a claim is open and whether the lender is listed on any check, since the owner, the lender and the insurer can all have claims on the money.

Do sellers of burned houses owe a disclosure?

Tennessee generally requires an owner statement or an “as is” disclaimer that the buyer waives disclosure for. Confirm the details. The law covers one to four dwelling units, and if you buy as a principal you may be the buyer who waives it, so understand what you accept.

What tax applies at the deed?

Tennessee charges recordation tax of $0.37 per $100 on deeds, usually paid by the grantee. A bare contract assignment is generally not a deed, so ask the closing attorney what applies. Wholesaling actions must be brought within two years of the contract.

Can I enter a burned home to inspect it?

Do not enter unless a qualified professional says it is safe. Photograph from outside and use a contractor. A burned shell can still attract builders who want the land, so get a written contractor estimate before you price your offer.