All Forum Posts by: Anthony Davis

@Jamell Kitt You could send a quick email to your closing attorney’s office asking them about your plan. Also, most if not all attorneys will give a free consultation for questions and answers.

If you’re bold and risky, just see if you are able to list it on Zillow and Craigslist to test responses. I believe you can take it back down anytime.

You could also search for Facebook real estate investors in your area to find local cash buyers. (There will be many wholesalers that say they’re cash buyers, but may have to use transactional funding.) You could ask, “Are there any cash buyers in the group interested in Richmond.Virginia?”...after joining a group. Some groups are public, so with a little time you could look over posts, comments, and profile descriptions for the word, ‘investor.”

Also, look for local (REIA) groups in your area>>>cash buyers are found in these groups as well. >>>Real Estate Investor Association.

@Account Closed I assume you’re wondering about the other nine properties. Be sure to have your assignment agreement is signed by your current end-buyer.

If you’re working virtually, after you sign the purchase agreement with the sellers hold on to that file.

When you do a virtual signing with the current cash buyer, you should send both files together to the closing office. (If the cash buyer wants information about your purchase agreement, you can answer whatever you can, but the purchase agreement should be available at the closing office-the closing office will handle everything else.)

You can ask your closing office if it’s necessary for the cash buyer to see your agreement with the sellers. I would caution you not to be overly cautious. Your cash buyer may buy all of them if you let them know that you have another property in the pipeline.

You don’t have to say that you have nine other properties. I wouldn’t ask my cash buyers to sign a non-circumvention agreement.

 Yes!

Many beginners in our area connect with other investors in Facebook groups before meeting in person. Meeting online with introductory posts followed by additional posts to Facebook groups help us develop a sense of familiarity for one another.

Some investors organize weekly meet-ups and extend invites to group members. Attendees of the local meet-ups pay a small fee for continued learning at the strategy sessions. You also get to know other local investors, or folks who are interested in investing.

Some local beginners actually (buy properties) from other local investors in the Facebook groups. Our groups have realtors, owner/brokers, property management professionals, contractors, insurance professionals, and experienced property developers. 

We even recommend lending sources from personal experience; and, we share investing experiences with lenders and closing attorneys. 

Get your training wheels by connecting locally and communicating with questions and responses to other posts within the Facebook groups.

@Wayson Lee Hi!

Are you planning to build a rental portfolio, or start a flipping business?

Both Gastonia and Concord are good choices. Concord Mills Boulevard has seen substantial growth during the last ten years. The mall in this area has seen improvements and businesses have sprouted up around the area...as well as apartment communities. This growth has produced jobs within the retail and restaurant industry. Concord has the Hendricks family of car dealerships on this same strip. There are hotels across from the car dealership brands on the boulevard. Concord also has a race track that brings in an influx of traffic and revenue during the year. Concord also has an amphitheater that creates an increase in vehicle traffic and revenue. Plenty of job opportunities abound that are under $50k/year.

Gastonia seems to have a larger land mass which includes many areas of trees; curvy country roads; mountainous terrain in parts of town; several town Burroughs with a country feel; and scenic views that depict a historic past and city improvements that suggests a progressive future.

North Carolina has an extensive health system that consists of urgent care facilities in certain parts of both cities. If buying rental portfolios, be sure to inquire about rent rolls and discuss payment histories. Jobs abound, but eviction restrictions may be in effect, until December of this year.

In short, both cities are great. If you are planning to fix and flip homes, Gastonia may serve you slightly better with a greater variety of homes, floor plans, and price ranges. Traffic congestion will appear in both cities; however, with entertainment venues, new businesses sprouting up, and a smaller land mass, Concord will experience traffic congestion more often.

Wayson, I hope this information gives you a good picture of everyday living here.

@Gerard Madden Welcome!

Have you set your key words yet? You’ll get alerts whenever there’s a new post in the forums that has your key words. After you list words like, landlord, (city, state), renters, the conversation alerts can be found on your dashboard options.

To use an old saying....I see you’re in my neck of the woods hahaha!

Welcome again! Reach out whenever you want!

Anthony Davis 

Charlotte, NC

@Matt Har North Carolina is a good state to invest in rental properties.

I’m curious if you’re just planning a road trip for pleasure....and want to look in-person at potential target areas.

A top brokers office can be found by a very high number of sales in comparison to sales by other ‘local’ agents.
Those high-sales volume offices may have working relationships with high-quality property management companies in the the target areas.

Sometimes, an introductory call can give a lot of information without signing with a brokerage or agent. 
Did you know that top real estate platforms can notify you when properties are listed within your target areas? I just wanted to give some insights/ideas before you start your trip.

NC: You can find decent property in the (Charlotte metro area) within your listed range.

The Raleigh, NC area has decent townhomes and other multi-family units within your listed range. SFR's as rentals will be less expensive the farther you go from the colleges.

Fayetteville, NC has the military base. Has flooding concerns. Hurricane concerns. Also, can be a great place to buy a cash flowing portfolio, hold for a while, then sell to acquire slightly better properties in other more desirable markets.

Raleigh, Durham, Chapel-Hill metros

Greensboro, High Point, Winston-Salem areas

The Charlotte metro area

are all college areas with heavy rental populations.

Between Raleigh & Durham is the Morrisville/Cary area near employers, such as Boeing, IBM, Glaxo-Smith Kline....name may have evolved by now but a lot of pharmaceutical companies and small manufacturing companies are in this area.  There is one Walmart Supercenter in Morrisville....formally better known as the RTP, Research Triangle Park.

I hope this helps in some way.

Anthony Davis 

Charlotte NC

@Alex Dizon Get your numbers together first...where they need to be to orchestrate a good deal.

1) Figure a good approximation of the ARV. Just ask the realtor, since you are already working with one.

2) Take that number, multiply the % discount, such as (65, 70, 75, 80) that your buyer is interested in. Just ask your buyer what the highest percentage is before not considering a property a deal.

3) Take the reduced answer, subtract your rehab approximation.

4) Subtract your expected wholesaling fee.

5) Subtract 3% for closing costs.

The answer ordinarily would be your maximum allowable offering to the seller, but because an agent is involved (and need to be compensated, along with your fee, in addition to closing costs)...you will need to negotiate well to produce something that can be called a deal if the current ‘Sold’ comps are not tens of thousands above your closing price.

The more ‘tens of thousands’ above the total closing costs the better for a deal. 
6) Because your agent will be using a standard contract, you will be asked about a closing date....you can just ask your buyer how fast a closing can occur if needed (before speaking with the agent to complete the purchase agreement.)

7) You will be asked how much of a down payment you want to offer in the agreement. (You can have them put a ‘TBD’ initially...to be determined. Say you need to talk to one of your ‘money partners.’ If pressed for a deposit, just offer between $10.00 to $100.00. Stand your ground no matter what, because the goal is to close ASAP with the end-buyer.

***Because you have involved an agent, it’s important to know if your purchase agreement has wording on wholesaling. If the standard agreement prohibits wholesaling. A Transactional money partner will increase costs, and create a double-closing situation.

If you aren’t working with an investor/agent you may have to help facilitate each step from all parties. Be sure to use a full-time real estate attorney...or a title company that is very familiar with investor transactions. ***The closing office will always let you know if all the paperwork is in order before closing can be completed. ***Before speaking with the agent to complete the agreement, you could ask the cash buyer about the closing office used to close previous real estate transactions.

I hope this creates ideas for you.

@Mckenzie Mckean As someone who has rented in different ‘types’ of neighborhoods, I’ll say take time out whenever you can to drive through the neighborhood where your properties are located during the morning, afternoon, and night to see if there is a substantial difference in foot traffic and/or noise level.

A suggestion would be to speak with your acquisition money partner about your investing strategy, while taking the ideas from the Realtor under consideration, especially if you are planning to keep your two properties long-term because the numbers are good. Investors have changed the outlooks of neighborhoods by buying several properties in close proximity, then updating them overtime.

Consider purchasing more properties on the same street, or neighboring streets if possible using the 10-home loan...as you said, the numbers are great. Property management is already in place for current properties.

Team up with the property management to see if you can get a different ‘type’ renter within your units, such as working families, or young medical professionals by recruiting from a different source.
This would allow you to update with slightly better upgrades, financially-sound tenants. The Charlotte metro area has utilized this method dramatically over the past ten years. We’ve ended up with a lot of updated properties with character in many previously low-end neighborhoods. A few low-end neighborhoods have actually become high-end neighborhoods. Bridge loans may be a better strategy after you complete the 10-home loan strategy. These loans may allow you to move faster with less upfront costs.
I hope I gave you some ideas.

Anthony Davis

Charlotte, NC

@Christian Kama Find out what your landlord wants. Does the landlord have a ‘pain-point’ that needs to be taken care of soon, or does the landlord have room to work with terms?

You can determine if you will consider a 203k loan. Consider a bridge loan, while you rent rooms, (maybe slowly fix up during this period using any ‘extra rent income’. Consider a sandwich-lease strategy. Consider a sandwich-lease with an option to buy (with the option written on a separate agreement.) You could even possibly put and/or assigns only on the option agreement to bring in a money partner later if needed. Consider an agreement where all rents are deducted from a negotiated ‘future purchase price.’

Consider your acquisition strategies based on your current capabilities, while including your (rent-rooms strategy.) Think of yourself as a master facilitator. Create the terms. Present options to your landlord to see if the options are feasible. Hope I gave you some ideas.

Anthony Davis

Charlotte, NC

Hey Kevin,

Think of yourself as the facilitator in the transaction. The period/terms are whatever you can get the owners to agree to. If you do not find a buyer, the contract date can be marked through, then extended with your initials and owners initials. Periods can be 7, 14, 30, or more days, but your goal should be to close as soon as possible with an end-buyer. A fast closing without repairs is usually a ‘feature’, or attraction in a wholesaling transaction.

Yes, you always want to be transparent with the sellers by putting ‘and/or assigns’, or and/or assignee’ after your name, or your entity’s name on the purchase agreement. Just mention that you are doing this, because you may want to bring in a money partner with you....or you’re thinking of bringing in a money partner, especially if you’re not using a transactional money partner.

I’m confident that you can find a buyer in a local Facebook group of investors, and/or in your local reia.

I won’t say good luck this time, because I know you’re going to create luck by being a great facilitator.

Hope this helps,

Anthony Davis

Charlotte, NC