Is wholesaling in Arkansas legal?
It looks like it. There are a couple threads that talk about specifically in Little Rock AR if do a quick search.
I am not a lawyer, so this definitely isn't legal advice, simply an opinion based on my own interpretation of how the law is written.
However, I think that there is a lot of margin for error when trying to wholesale given the definition of brokering here in Arkansas. I originally was looking into wholesaling when I didn't have my license and trying to go into the investment route that way. However, admittedly, I've always been a bit of a stickler on rules and regulations because I don't like getting caught up in stuff. This led me to just conceding that it was much safer to go the route of getting my license, which leads me to now where I have been licensed for about a month or so! When looking it over, the big terms that stick out to me are everywhere they added "exchange" and "assign".
Anywho, AR Code, chapter 42, Sub 1, under definitions defines acting as a broker for someone as:
(10) "Principal broker" means an individual expecting to act or acting for another for a fee, commission, or other consideration who:
- (A) Sells, exchanges, purchases, rents, or leases real estate;
- (B) Offers to sell, exchange, purchase, rent, or lease real estate;
- (C) Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rent, or lease of real estate;
- (D) Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange;
- (E) Auctions, offers, attempts, or agrees to auction real estate, or participates in a real estate auction;
- (F) Buys, sells, or assigns or offers to buy, sell, or assign or otherwise deals in options on real estate or improvements to real estate;
- (G) Collects, offers, attempts, or agrees to collect rent for the use of real estate;
- (H) Advertises or holds himself or herself out as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate;
- (I) Assists or directs in the procuring of prospects calculated to result in the sale, exchange, lease, or rent of real estate;
- (J) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, lease, or rent of real estate;
- (K) Engages in the business of charging an advance fee in connection with any contract whereby he or she undertakes to promote the sale or lease of real estate either through its listing in a publication issued for such a purpose or for referral of information concerning the real estate to brokers, or both; or
- (L) Performs any of the acts described in this subdivision (10) as an employee of or on behalf of the owner of, or any person who has an interest in, real estate;
We buy 15 + properties a month in Little Rock metro area. Typically able to purchase 3-4 from wholesalers and have had great experience with working with them.
@Zul Budhwani 15 properties a month?? if only supply of good deals would have been so...
@Hadar Orkibi Fortunately we have some great relationships with wholesalers, listing agents and auction sources.
@Zul Budhwani any chance your wholesalers have properties on their lists in the River Valley (Russellville,AR.) area? Looking for a potential BRRRR or Flip in that area.
@Randy Moore No sir not familiar with Russellville, AR