All Forum Posts by: Scott Johnson

What's uuuuuup, Latoya! Read the NC general statute on wholesaling and ask frequent questions to the real estate commission. Even give them a call to ask about wholesaling as a broker.

That'll get your education started off right! Let me know if you have questions!

Each upgrade is depreciated separately, and each has a monetary value and depreciation schedule.

So to keep it simple, use your books 😉 

Accounts/Sub accounts: Address (or property identifier) >> Name of update >> Depreciation account for that upgrade.

I am not a CPA and am not providing legal advice. Just a thought.

Let me be more specific. I didn't have enough space in the Title:

Novations where the investor uses a Limited Listing that puts them as the primary contact for scheduling showings, receiving/accepting offers and negotiating are brokering without a license.

Novations where the investor actually hires a real estate broker to handle the aforementioned for the seller are not included. As far as I'm concerned, they're a great way to wholesale in states where they've outlawed wholesaling. 

And yes, I'm a broker. I've got something to gain. I'm Novation Listing Friendly. Deal with it.

Correct me where I'm wrong but Novations can be executed by either a Power of Attorney being given to the investor or by an investor just doing the paperwork, both being done after they secure their interest with an option contract (unless there's some other creative thing I haven't heard about yet). With the Power of Attorney, there may not be an issue. 

All I can say is that when an investor is the person who's doing the job that a real estate broker is commissioned to do, per state law, that's brokering without a license, which is no bueno and shouldn't be allowed. 

If novations are done using a broker, it's straight up CYA. Work their commission into your numbers, especially if they understand novations. 

I would learn a little bit more about contract law in your state. In North Carolina, any contract is a sign unless it expressly states that it's not for whatever reason.

also, don't be afraid to pay the $300 for an attorney to sit down with you and answer your questions about what you're trying to do.

@Tyler Garza  comparable sales. If a property of similar bedrooms, bathrooms, type, and square footage has sold within the last six months, that is a comparable sale. Use three of those to give you an idea of what your property will sell for.

Sometimes, I'll do a quick and dirty comparable analysis by averaging the value values from Zillow, Realtor, and Redfin. Just keep in mind that it's always better to run a comparable analysis.

Are they all in the same county? Some counties have API as that allow you to access their tax records. Easy and free.

These guys have it lock!

I've been doing this for eight years. 💪🏻 it becomes even more important when you get your brokers license.

It'll be important to know how much taxes you're gonna be paying when you sell it. That way, you don't get blindsided with the tax bill next year.

otherwise, sounds like a pretty cool idea.