All Forum Posts by: Troy Gandee

@Evan Bermudez There are quite a few busy wholesalers in the area. I will warn that the real estate commission has recently decided wholesaling/assigning contracts to be the same as brokering real estate, so they now require wholesalers to have a real estate license and have a signed listing agreement with the seller. My understanding is that they have just recently started enforcing this, but you should be weary that the landscape is changing very soon.

@Scott E. Coastal Equity Group is a great lender. I use them frequently for my deals. I also use RehabWallet for quite a few deals. Either on will be good choice, but RehabWallet does not lend on buy and hold deals. They're focused on flips/bridges. It just depends on what you need.

@Mona Lisa Harrison is correct about the legality of wholesaling in SC. The SC REC has deemed assignment of contract to be no different than brokering real estate, so you technically have to have a real estate license and a signed listing agreement with the owner of record to wholesale in SC now. As far as I know, the REC has not yet started enforcing this much, but I have been told it's just a matter of time. My understanding is that there will be cease and desist orders issued to offenders and repeat offenders will be issues significant fines.

@Vishal P. Any property you do not occupy will be assessed at the 6% rate in SC. You can claim a multifamily up to 4 units as a primary if you do occupy 1 unit. Those are still considered residential in nature. In general, any multifamily property with 5+ units will not be approved for the 4% even if you live in the building.

@Koren Shoshan It doesn't seem like a bad deal. Especially not for a primary residence. The taxes will be much lower than an investment property, which will be helpful.

It really depends what market you're in, the immediate area and the condition of the home. 

Cap rates and values different significantly from Charleston to Columbia to Greenville, so he ROI will be different in each market. It also looks like at least $995 is the market rent for the units in good condition, so you should be able to bump the under performing units up a bit over time.

In the Charleston market, it's almost impossible to find anything at the 1% rule anymore, so not likely you can get the seller down that far. We're usually closer to a .75 or .80 purchase price to rent ratio (ex. $750/$800 in rents, purchase price of 100k). I would probably try to start in the 420/425k area, but if all the mechanicals are good and I can easily push rents to 1k+ without much work, 440k could be a good buy. Again, I don't know enough to tell you for sure, but these are generalities based on my market.

@John Semanchuk I was afraid that would be the answer. I used to broker a lot of these downtown, but it's gotten really difficult with prices, interest rates and parking requirements. This is why a lot of people are switching to that corporate model like you mentioned. Best of luck to you, man!

@John Semanchuk best of luck!

@John Semanchuk My understanding of that situation would be that they'll only allow the permit on 1 TMS and that unit must be owner-occupied. I would think they wouldn't allow the others to be rented short term given that they're all separate and distinct properties. They're pretty helpful down on George St, so they'll give you the right answer. The exception could be if it's unincorporated, but that's pretty rare these days. Even then, the County has some pretty restrictive rules. Even Town of James Island has the same owner-occupancy restriction as City of Charleston, I believe.

Thanks @Lindsey Johnson!

@Will Gaston I can take a run at it. Essentially, it has to be your primary residence anywhere in the City of Charleston. Even the STR overlay only allows non-owner occupied full time STRS in properties that are commercially zoned or have commercial applications. Depending on where he lives or what his plan for the property would be, it could be a challenge downtown. There are some exceptions, but it takes quite a bit of finesse with the City/County if it's an outlier.

@Raf Pinero We can certainly help you o n the Realtor side, but I will say that finding deals with enough spread to BRRR have been difficult in the post-covid market. Values have shot up, labor is more expensive and rates are high, so there are fewer and fewer deals that can truly be BRRRed these days. I've done quite a few and many of my agents have done them, so we know the process well, but it's not as easy as it was prior to the market running away.