Massachusetts Wholesaling Legality

[Jason Tufts]

Hi everyone, I'm still fairly new to the real estate investment world, with wholesaling looking like a very viable option for myself. The largest concern/pushback that I'm seeing is some people claiming that wholesaling in this state is illegal and/or frowned upon without a license but nothing in the research I've done suggests anything illegal, especially if you're working through a real estate agent. I guess basically my question is... as long as I follow general protocol and my process is respectful and reasonable, I should be fine right? Any responses or references such as video links or articles are greatly appreciated!

[Jonathan Bombaci]

@Jason Tufts there are Many very active wholesalers and even very large companies who are wholesaling in MA. To @Donald Dooley point as long as your acting ethically and not miss-representing yourself you'll be fine. I'm in the process of buying 2 properties from wholesalers and I helped a newbie wholesaler move a property in Methuen in January. It is very legal and a big part of the investor focused industry in MA. 

I would suggest partnering with an experienced wholesaler, real estate agent, or attorney early on to make sure you get the support and contracts you need to be successful. Once you get a few under your belt you'll be a lot more confident. Also if you're thinking about getting a real estate license just make sure you understand how that may impact you from a liability and potential conflict of interest stand point. Many wholesalers have real estate licenses but many opt not to have one for various reasons. 

Best of luck,

Jon

[Donald Dooley]

@Jason Tufts

Don’t listen to the hype. As long as you are ethical and don’t misrepresent yourself as a licensed agent in your business practice you are fine.

Give me a shout if you want to connect

[Jonathan Bombaci]

@Jason Tufts there are Many very active wholesalers and even very large companies who are wholesaling in MA. To @Donald Dooley point as long as your acting ethically and not miss-representing yourself you'll be fine. I'm in the process of buying 2 properties from wholesalers and I helped a newbie wholesaler move a property in Methuen in January. It is very legal and a big part of the investor focused industry in MA. 

I would suggest partnering with an experienced wholesaler, real estate agent, or attorney early on to make sure you get the support and contracts you need to be successful. Once you get a few under your belt you'll be a lot more confident. Also if you're thinking about getting a real estate license just make sure you understand how that may impact you from a liability and potential conflict of interest stand point. Many wholesalers have real estate licenses but many opt not to have one for various reasons. 

Best of luck,

Jon

[Jason Regan]

As a real estate agent and investor I like wholesalers, but I third the point made by @Jonathan Bombaci and @Donald Dooley, you need to be ethical and straightforward about it. As an investor a good wholesaler can bring me great properties. As a realtor you may send me a home that I can help my clients buy without fighting 50 other people for it. I recently talked to someone who had an issue with wholesalers and was very angry. The wholesaler misrepresented themselves as the buyer and then put the home on MLS. He was very surprised and cancelled the contract with the wholesaler (unsure how).

[Latoya Wilson]

@jason 

@Jason Regan Hello Jason, I am new to wholesaling and we went the route of working with an agent. We (me and my sister) have been upfront about what we do and may re-assign the home. So all is good in the ethical area. Now we are under contract and have received several interests and the agent is doing a showing this weekend. However, it doesn't look like we have a solid confirmation with one of the buyers (2-3 ppl showed interest) to attend a showing this weekend. So we are a little anxious about if anyone is going to show. IN the meantime, we have posted on craigslist and social media. We believe we comped it well and offered a good deal. Any advice would be appreciated? Thank you in advance! Latoya