All Forum Posts by: Jesse Canady

Also- I am aware that this is stating the obvious, but sometimes its easy to get blinded by the potential of a deal! This is a reminder to stay diligent. Don't get yourself into a deal that is only going to work through speculation. Get into one where the facts line up! 

Hey guys! Just a quick post to draw attention to a situation I've been seeing more and more of lately. 

I know we all love these emails that come straight to our inbox with "Rare deals" and "Great buys!". Most of them are legitimate deals, from great wholesalers (Thank you for your work wholesalers!!). I truly have seen/been a part of some great properties from these emails. However, I have been getting a lot of them recently that are clear misrepresentations of the potential in the deal. 

One example-

An investor reached out to me about an email we both received, saying "we have to jump on this, it's too good of a deal!" The email was from a wholesaler out of the western part of NC, with a contract assignment here in Wilmington. They wanted $235k.I started digging into it and found a few key problems 

- The ARV they had assigned to it was around $350k. This was way too high. As seen below, the highest comp sold for $270,000. Clearly it is a HOT neighborhood as most of these went over list price- but they're not selling for $350k.

- The comps they used were not the same ones that would most likely be used by an appraiser. They were in completely different neighborhoods. None of the comps on the above chart were used in their analysis. This chart is straight from the MLS.

- The square footage was listed as almost 250 sq. ft too high, as they were counting porches/unfinished additions. This neighborhood sells for an average of $163 sq/ft. 250 square foot off can be a $40,000 mistake. 

All of this to say:

1. Check to make sure the Listing agent/ Wholesaler/ Seller understands the market. They don't have to be local, but their analysis may be off if they are not. Neighborhoods/price per square foot varies from block to block around here. 

2. Verify!!! Do your own research and your own evaluation. 

3. Reach out to a local Wholesaler/investor/Realtor if you have any questions. Even if we are not benefitting at all from the deal we are more than happy to help you look it over!

If you've made it this far, thanks for listening! We're all on this site for the same reason- to be successful. If this story can help even one person not burn any due diligence/earnest money, then it has served its purpose. 

@Richard Helppie-Schmieder Short term is big at the beaches! @Joe Prillaman is a great short term resource. Flips and long terms are big in Wilmington proper. 

@Steve Keisling Yes, but thats not the only way to add value to a BRRRR. You could add bathrooms (in wasted space) or a detached workshop or other adjustment items that will benefit the house come appraisal time. Feel free to reach out to chat more!

@Steve Keisling I would agree with the agent. Not to state the obvious, but it all depends on the comps. I have reviewed hundreds of appraisal in the area. Some appraisers are a little bit more generous with a "condition" adjustment, however the features that carry a larger monetary adjustment are garages, porches, square footage, etc...

If the subject property has the same features (or less) than the comps, then new kitchens/bathrooms/interior may not add enough value. 

Brandon,

Knowing how great you are with people, I think the eventual goal of being an LO would be great. However, an LOA could be a perfect position for you currently. You've got the skills for it and it is a great position to get more comfortable with the ever-evolving loan products. 

There are also plenty of administrative positions for Real Estate teams that you may want to look into. Admins are a crucial piece to the business. Agents who understand that make sure their admins are taken care of. 

- Jesse

@Steve Keisling Those are some great options. I am a big fan of the house-hack. I have sold a lot of house hacks (as an agent) in the area, both long term and short term rentals. I have some clients I would recommend chatting to about buying a HH in the area. I will send you a message.

As for the other options, have you looked into the BRRRR strategy around here?

Hey @Steve Keisling. Whats your investment strategy? 

Mehul,

The last thing you want is the commission coming after you because you did not disclose up front that you have your license. You can market it as you want to get the property sold (whether it is to you or to a different buyer) but if they find out you have your license after the fact, that may warrant a consumer complaint. 

Best of luck! - Jesse

@Leah N. if you are still looking for an agent, definitely reach out to @Courtney Rock!