Wholesaling Fire-Damaged Houses in Wisconsin

The short answer

Is wholesaling fire-damaged houses in Wisconsin legal?

Generally yes, as long as you give the written wholesaler notices that Wis. Stat. 710.13 describes and stay within broker rules. Check the current statute text and talk with a Wisconsin attorney before your first deal.

For one-to-four unit homes, Wisconsin treats a buyer who plans to assign the contract as a real property wholesaler. As the statute is written, you tell the seller in writing no later than the time you sign the purchase agreement. You then tell your end buyer in writing no later than the assignment contract, including that you hold an equitable interest and not title. Our assignment guide and equitable interest guide explain the idea.

If the seller notice is late, the seller can generally cancel before closing and may keep the deposit. These rights cannot be waived. Fire adds its own wrinkles: insurance proceeds, a lender’s name on the claim check and city orders. Read our legality overview before you sign anything.

The opportunity

Why fire-damaged homes make good wholesale leads in Wisconsin

Fire sellers are rarely shopping around. A kitchen fire in a Milwaukee two-flat can leave an owner with smoke damage, a half-paid claim and a vacant building that the city is watching. Rehab buyers who know the neighborhoods will pay for the work they can see, so your job is to price the repairs honestly with our repair cost guide.

Lead sources

Where to find fire-damaged houses in Wisconsin

• Driving the neighborhoods. Look for boarded windows, tarps and soot streaks. Our driving for dollars guide shows how to log them.
• City records. Building inspection and code enforcement records in Milwaukee may list properties with fire or condemnation orders. Check what is public.
• Fire department reports. Local fire departments often publish incident logs. Treat them as a starting point, not a verified owner list.
• Owner lookups. Once you have an address, use our guide to find the property owner.
• Mail and calls. Send respectful letters, and read our TCPA rules and the Wisconsin do-not-call rules before you call.

Your exit

Who buys fire-damaged houses in Wisconsin

Rehab investors, small builders and landlords with their own crews buy most burned homes. They want a clean scope, photos and a realistic purchase price. Tell them about the fire, the insurance status and any known city orders up front.

Give each buyer the written wholesaler notice before the assignment contract, and keep copies. Our cash buyer guide shows how to build a list. Check whether the buyer can close with a title company that is comfortable with fire losses.

Step by step

How to start wholesaling fire-damaged houses in Wisconsin

1. Find the owner. Confirm who holds title and whether a mortgage is recorded.
2. Ask about insurance. Learn whether a claim is open, paid or denied, and who is named on the checks.
3. Inspect safely. Burned structures can be unsafe. Stay out of unstable areas and let the buyer’s contractor do the deep look.
4. Run the numbers. Use the ARV calculator and the MAO calculator with a repair budget that includes demolition and smoke remediation.
5. Notice before you sign. Hand the seller the 710.13 wholesaler notice in writing at or before signing.
6. Notice before you assign. Your buyer gets the written notice at or before the assignment contract.
7. Close at title. Use an investor-friendly title company and confirm payoffs and liens.

A Milwaukee landlord owned a duplex on the north side that had a second-floor kitchen fire. He wanted out within a month.

You walked the outside, photographed the roof and agreed on $58,000. Before he signed, you handed him the written wholesaler notice and explained that you planned to assign. You used the ARV guide and local comps to set the repaired value.

A rehab investor took the assignment for $9,500 after getting the second written notice. The title company cleared a small water bill and a lien, and the deal closed in about three weeks.

Wisconsin rules to know

Notices, brokers and fees for fire-damaged houses

Wis. Stat. 710.13 is the main wholesaler rule for one-to-four unit homes. Late notice can let the seller or buyer rescind before closing. The statute is short, so read the current text yourself. Wisconsin also has a broker definition that can reach people who show a pattern of sales, and five sales in one year or ten in five years is described as presumptive evidence. Our license guide goes deeper.

A seller who lived in the home generally must give a real estate condition report within 10 days of accepting the offer, and a buyer may rescind within a short window if it is late. The grantor pays the 30 cent per $100 transfer fee unless an exemption applies. Hire a Wisconsin attorney through our attorney guide before you rely on any of this.

Learn it with a mentor

Get a second set of eyes on fire deals

Burned houses are easy to misprice. Mentorship students send us photos and rough numbers, and we help them decide what to offer and how to disclose.

FAQ

Fire-Damaged Houses in Wisconsin: common questions

Keep going

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