Wholesalers in Maine

11 Replies

@Charlie MacPherson thank you! I was wondering about that. I really have my heart set on buying rentals anyway but with no current funds I was hoping to make a wholesale transaction to get the funds I need to start. Now I know I will have to wait and find another way. I can also now return my research focus back to where I need to be. Thank you so much! ☺️

The difficulty with wholesaling in Maine is that the housing stock is so old that it's hard to get an accurate repair estimate. Also, neighborhoods vary so much that it's difficult to calculate an accurate ARV without a good real estate agent. Many of them send me "deals" that are completely unrealistic.

You can get around the requirement to have a license by assigning the purchase and sale agreement.  You aren't acting as an agent.  That doesn't mean that a disgruntled person won't accuse you of practicing real estate without a license, but the risk is up to you.

@Amy A. I have noticed that a lot of the homes are very old and it makes me hesitant. I have also noticed how hard it can be to get an accurate ARV with everything being so rural and the neighborhoods are so small and different. Thank you for the knowledge and advice!

@Sara Rush - Just like @Amy A. mentioned, get yourself a knowledgeable agent who can give you fairly accurate ARV's in each market you are looking in. The arv can change quite a bit from one neighborhood to another, I know from just working in the Lewiston/Auburn area there is a decent change in price.

You will also want to connect with someone familiar with repairing the type of building you are looking at. Plumbing, electrical, windows, paint type and more. The old stock in Maine is a history in construction lol.

Carl

@Sara Rush I sent you a message. Happy to connect with fellow investors.

@Amy A. is correct about wholesaling in Maine. You can assign a contract in Maine, that is entirely legal and is even considered in Paragraph 19 of the State P&S form. It is acceptable to do so, but you must keep in mind that a true assignment means the next party is inheriting all of the original terms so make sure the eventual buyer can perform or the seller is open to amending if needed. You need to be careful in how you market the property as that is where you could get in trouble. If you are marketing it as for sale to the public and providing opinions or statements of value than you can get in trouble for practicing real estate, so just be careful who you market it to and how you do so.