All Forum Posts by: Levi Bennett

Hey Regina, I would talk to Movement Mortgage here in Charlotte. They normally prefer to pre-approve their clients before they even start looking. Just tell them what you're trying to do. 

Also, I know the best real estate team that works almost exclusively with out of state investors, but I wanted to chat with you first so we can narrow down what you're looking for. I'll tell you up front, the "out of town" demand for Charlotte is red hot right now, and they don't have time for investors who don't know what they want, or want something unrealistic. They're very good friends of mine, and if I recommend a client, they will always give you priority. 

I'm happy to help. 

Hey Cindy, wrapping your head around the Charlotte market can be a bit daunting, I know some fantastic realtors that work almost exclusively with out of town investors, but I'll tell you right now they don't have time for people that don't know exactly what they want, or want something unrealistic. What are your requirements/goals in real estate here in Charlotte?

Apparently there is a big debate among wholesalers about whether or not to disclose the end buyer/assignment when you first meet with the buyer. 

In my experience (I've closed about 20 wholesale deals, all of them assignments), we rarely told the seller how it was going to sell when we first approached them, we just said that we were interested in buying it (we were). 

This kept me in the drivers seat with the seller, and also cut down on confusion (especially in the beginning of a deal). Depending on the deal, sometimes it was beneficial to go ahead and explain it, but again, that depends on what's going on. Every deal is different. Blanket statements are not useful. I will tell you, most people aren't familiar with assignments or how they work, and if you start talking about that at the beginning, you're dramatically reducing your credibility and chances of closing that deal. 

I'm a big fan of disclosing, however, saying that you know who the buyer is going to be, or you know when or how it's going to close is (frankly) presumptuous. Nobody can guarantee that, not even when you buy a house with an agent. The main goal for a wholesaler is to get yourself into a position of equitable interest on the property so that you HAVE OPTIONS. You can buy it yourself (that happens sometimes), you can assign it, you can double close (in which case, you are the end buyer technically). THIS IS WHY YOU USE A GOOD CONTRACT. Working with a good attorney to create a contract that works for your city and state is critical. 

Everyone here commenting is from different states with different laws regarding assignments and soliciting, and it's really important that you guys know what's legal in YOUR state, and that should determine (more than anything else) what you disclose when you first speak with a potential seller. Also.. if you have a license, that carries with it a completely different standard that if you don't have a license. 

If you are a licensed RE agent and you are wholesaling, be VERY careful and know your laws. You have a disadvantage because, just by being licensed, you're open to being investigated by the RE commission in your state, and you have more legal requirements than a normal investor, and more leverage against you in court if you ever get sued. 

In my personal opinion, you're way better off wholesaling for a living without a license than with one. I understand having a license lends itself to many other opportunities, but that's why I'm a big fan of partnerships.

Everything. Everything is going on in the market.

Charlotte has one of the most active RE markets in the US.

This is an extremely broad question, but some basic economic research on RE trends for the area should paint a good picture for you. Prices have been increasing consistently in (or around) the double digits year over year, which should tell you something about demand. Also, Charlotte is considered by many to be an "indicator" market.. basically, ahead of the bell curve for the rest of the country. Typically Charlotte is at the tip of the trends, and the rest of the country tends to follow the pattern that is set here first. My personal opinion is that it's because of the financing and investment leadership here compared to other places. The banks are based here, many investors are based here, and so that lends to Charlotte being ahead of the trend. I've personally met hedge fund managers that watch the Charlotte market as an indicator for other markets around the country, while not actually investing here.

With all that said, it's extremely competitive. People from the around the world want to invest here (especially in multi-family), and inventory is extremely low across all types of real estate, especially single family homes. 

Honestly, your best bet is not take anyone elses word for it, but do your own research on trends, economic data and come to your own conclusions. You may see something the rest of us missed and make more than all of us. 

Evening

I am good for either one, thanks for putting this together. 

Hey man, I've got some coming down the pike. Should have the information soon. They're thoroughly in the Charlotte market, all properties (3 in total) being within 5 miles of uptown. I'll keep you posted. 

We're about as responsive as it gets. My background is in transportation logistics, so managing tons of moving parts and being ahead of the game is at the core of our business model. Also, since the ownership is from Charlotte, we understand the market and try to be as investor friendly as possible with our management agreements. I'd love an opportunity to chat with you about it. 

Man, it's going to be pretty hard to turn down a trip to top golf and chat about real estate. Count me in. 

I'm in Charlotte, working on wholesaling an off-market deal of 30 units, 12 units, and a duplex in one deal.. Rent roll is $20k/mo. Maybe break off the duplex. All within 5 miles of Uptown and 100% occupied, all lower income. Definitely a value-add situation. 

@Dan Handford Brokers have nothing to do with it, I only mention that because off market multi-family anywhere in Mecklenburg has probably been solicited for 6 years or more, interested sellers usually have their pick of the litter and I'm just curious how you fared with that... sounds like 2 out of 11 ain't bad, what is your basic criteria or disqualifiers?