Wholesaling assignments and double closes are now illegal in South Carolina

[Jay Hinrichs]

OK folks I have real world experience at this.  This morning I went to wire in funds for my clients to buy a property in SC.

And because it was an assignment contract to ME as the buyer.. I got a call from title company and their attorney instructed them that

they can NO longer close deals that are from assignments.. or do double closes..  The assignor must buy the property themself. And then re market it they cant have a buyer lined up ahead of time.. as that on its face means they have marketed the property.

So read em weep wholesalers assignors.. but I am going to provide ulra short term funding for X wholesalers were we will do JV deals and they can still do what they do.. obviously its going to cost.. so wholesalers with limited profits wont be worth it..

Or X wholesalers in SC simply have to get a RE license and get in the business that way .  or simply do not operate in that state.

@johnunderwood 

[Jay Hinrichs]

Quote from @Caleb Brown:

For someone wholesaling what's the cost to use short term funding in order to wholesale for these states? Curious if that will weed people out who are not legit companies. 

really depends on the lender/partner..  transactional same day is usually pretty cheap about 1% or maybe less but they want their money back that day or next day.. these will now have to be 30 to 60 days loans and there are not a whole lot of folks that will entertain those.. suffice it to say the wholesaler or assignor  Like the one that got cancelled on me today.  the Fee was 4k no way to loan money on a deal for 30 to 60 days and make enough to also have money for the assignor.. and of course depends on the size of the transaction of course..  I think given the competition this will be a severe blow to the Assignment only / wholesale folks in that state.