Wholesaling Fire-Damaged Houses in Washington

The short answer

Can you wholesale a fire-damaged house in Washington?

Generally yes, if you act as a principal buying for your own account and you are honest about your role. We found no Washington law written only for wholesalers, so check current text and ask a local attorney.

Washington licensing sits in chapter 18.85 RCW. The brokerage definition in RCW 18.85.011 covers optioning property, negotiating for others and holding yourself out as a broker. There is also an exemption for people who buy or dispose of property for their own account, found in RCW 18.85.151. We read only part of that exemption, and the section has more than one version, so check which one is in force. Our license guide and legality guide go deeper.

Acting as a broker without a license can be a gross misdemeanor under RCW 18.85.411. So do not advertise a burned house for sale before you control it, and do not take a fee for a seller you do not have under contract. Use a written agreement with assignment language, and see our assignment guide.

The opportunity

Why fire-damaged houses work in Vancouver

Vancouver is part of the Portland metro, so buyers and renters come from both sides of the Columbia River. Clark County homes that need rebuilding often sell to flippers who already work in the area. Fire owners usually want out of a long process, not top dollar. A cash buyer who can close fast and handle the burned shell looks good next to a drawn-out claim. Run your numbers with the ARV calculator before you call anyone.

Lead sources

Where to find fire-damaged leads in Vancouver

• Drive the neighborhoods. Look for boarded windows, tarps and burn marks. Use our driving for dollars guide.
• Fire incident lists. Local fire agencies sometimes publish incident logs. Ask what is public.
• Absentee owners. Landlords with a burned rental may not want the rebuild. See absentee owner leads.
• Insurance contacts. Public adjusters and restoration crews meet owners early. Build relationships and never pay for referrals without legal advice.
• Direct mail. A short, kind letter can work. Read about direct mail first.

Your exit

Who buys fire-damaged houses in Clark County

Rehabbers, small builders and landlords are the usual buyers. Many want a lot with utilities and a foundation they can use. Share photos, a scope of work and the insurance status up front.

Some buyers want the house, others want the lot. Tell them which structure is salvageable and what the city may require. A buy box helps you match the right buyer fast.

Step by step

How to start wholesaling fire-damaged houses in Washington

1. Meet the owner. Ask what the insurer has paid and what the lender needs.
2. Walk the structure. Look at roof, framing, smoke damage and utilities. Stay out of unsafe areas.
3. Estimate repairs. Use our repair cost guide and bring a contractor if you can.
4. Check the numbers. Run the MAO calculator with your repair range.
5. Sign with care. Use an agreement that says you may assign it. Be clear about your intent.
6. Review liens and permits. Order a title search and look for open permits. See title search basics.
7. Close through escrow. Use an investor-friendly title company and plan funding.

A homeowner in east Vancouver lost a kitchen and attic to a grease fire. The family had moved in with relatives, and the claim had stalled for four months. They owned the house free of a large loan and wanted to be done.

You walked the house with a contractor, then agreed on $215,000 with a 21-day close. You told the owner in writing that you might assign the contract. A title search showed no liens beyond the old mortgage.

A local rehabber paid you a $20,000 assignment fee and closed at escrow. The owner kept the insurance proceeds that were owed to them, subject to their lender. Work through your numbers with the ARV guide first.

Washington rules to know

Washington rules to check on a fire-damaged deal

Sellers of improved homes generally must give a Form 17 disclosure under RCW 64.06.020, unless a buyer waives it or an exemption applies. The buyer then has a short window to rescind. The section shows versions with different effective dates, so check which one is in force. If a house is unsafe, the city may have posted it, so read our condemned house guide.

Washington taxes the sale through the real estate excise tax in RCW 82.45.060, and the rate depends on price. Contractor liens can matter on repair work, so chapter 60.04 RCW is worth reading with a lawyer. Foreclosure under chapter 61.24 RCW has set notice periods, and a trustee’s sale ends redemption, so move early. Talk to a real estate attorney.

Learn it with a mentor

Price the burn before you promise anything

Fire jobs hide costs in smoke, wiring and permits. Mentorship students send us photos and scopes, and we help them decide whether the deal is worth chasing.

FAQ

Fire-Damaged Houses in Washington: common questions

Keep going

More Washington wholesaling guides

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

Guides that go deeper