All Forum Posts by: Scott Johnson

 I feel that Cap Rate is more for 50+ unit commercial properties. 

What's the performance looking like, @James Brandon? Can you provide us some numbers?

 I agree. If a buyer's agent brought you to it, have them send it. Otherwise you can send it yourself. 

Congrats and Happy Birthday!

 Absolutely! If its anything like NC, they're going to give you two books. A big one with a ton of information regarding the process of brokerage/law/national law/etc, and a small book of Rules and Regulations directly out of the State Legislature.

STUDY THE SMALL BOOK AND UNDERSTAND IT BACKWARD AND FORWARD

If, during the class, they tell you about certain statutes in that book, highlight them and revisit them. If they have a section that talks about use cases for the laws read the heck out of them because test questions likely are derived from these cases.

Otherwise, just know the math. The Big Book was easy to absorb. The Small Book (The Law) was harder, but since Real Estate Commissions' sole purpose is to protect the public from unsavory brokerage practices, that's what you need to study the most. 

 'Apologies, Mr. Company Relocation Person. Our Mid-Term Rentals are only available in increments of [whatever you want: 3, 6, 9 months etc]. We also require confirmation of income prior to renting.'

Cover your ***. Sounds sus to me, but if they sign a multi-month lease that you're conformable with and they show verifiable proof that you'll be paid, it may be a risk worth taking. Never operate in the shadows. There's far too much money to be made in the light. 

 Howdy, fellow North Carolinian!

Have you checked the zoning on the property? Higher density areas like Charlotte may require that only higher density properties are constructed in that area. Here in Greenville not so much, but it may be a zoning requirement. 

I'm sitting down with a Zoning official today to get a better understanding of zoning changes in regard to their 2026 Master Plan. What I've been learning by reading it is awesome. I'm also studying NC DOT Road Projects and their effects.

Also check to see if they've been separated into different parcels. They may have slapped them together and didn't want to take on the surveying cost of parceling them out. In that regard, maybe there's an opportunity to buy them, survey them and sell them for a higher price. 

 Have you read your states legislation regarding Subject-To purchases? 

Here in North Carolina, it's seen as an unrecommended practice since you're taking ownership of it without the bank's knowledge. Obviously, that wouldn't stop people (or myself for that matter) from doing it as long as the verbiage that the NC Legislature requires on purchase agreements is added to them. This notice simply tells the seller that they're still liable for the loan and that the practice is completed without the knowledge of the banks. 

More-to your question, absolutely a Due on Sale Clause can be triggered by the bank if the property changes hands. The risk of the Due on Sale is still on the seller ultimately, so if you know the deal is shakey at best, I wouldn't do it because the primary concern is solving the seller's problem. If they end up getting foreclosed on anyway, that problem wasn't solved.

 Agreed. Seller needs first.

But to answer your question, a Hard Money Lender wouldn't issue a loan unless their lien is in first position. Since that means the original underlying loan needs to be paid off then its fine for a buyer to use a hard money loan to close on it. 

It solves the seller's problem, but keep to what Eliott said for all future contracts.

 K. Have you read Georgia's legislation regarding foreclosure?

 What do you hope investing in real estate will do for you?

 Git 'er done, brother! Let us know what they say!