out of state investment

[Jody Roussel]

hey there!! 

does any one have experience in investing into Maine real estate?

Due to covid a lot of lower credit score requirement lenders have pulled back from the fha 203k loan programs. I've researched  the possibility of hard money lenders/interest only payments with amortization after 24 months. Most of these lenders are now requiring a project minimum of 100,000 and 20 percent contribution from seasoned flippers and 30-35% to newbies! Since I fall in the category of the latter I fall short only 5k for this proposition. 

Ive decided to look out of state and homes i can purchase cash or 50% down and seller carried finance and or local lender/ hard money lender for foreign national to buy and hold.  

Ive found a few properties in maine selling for under 50k with 20+ acres. my hopes would be to excavate and build by selling off acreage to fund purchasing building a prefab home on the land.

Does this seem like a solid idea and goal, just trying to find something to get my feet wet in this current drought

thanks

[Charlie MacPherson]

@Jody Roussel  At those prices with 20+ acres, you're looking in Rural Maine, and probably very rural.

The trick with subdividing and developing that kind of property is DEMAND.  If you're looking at something other than a college town or tourist areas (which are unlikely to have properties that inexpensive), I'll bet that you'll have a harder time than you think selling off those new lots.

In general, unimproved land moves more slowly than regular homes.  The more rural, the less demand, the slower they'll move.

When you get into central Maine, mid-coast Maine and areas Bath and south, things will sell more quickly as the demand will be higher - roughly in that order.