All Forum Posts by: Chris Martin

Sounds like they don't qualify for a Section 121 exemption/exclusion. Since you are in NC, historically I would think a simple broker's option contract would work. Alas, NC Realtors removed their form years ago. An attorney can draft a NC legal option contract for you. 

What the contract does is lock in your rights as a buyer but delays closing until some future time, possibly years or even decades. 

I don't go to "closings" in the traditional, 'big table' sit-around-and-wait-for-suits, sense. Instead, in advance (by days generally), I sign documents needing a notary at the local Wells Fargo, then overnight mail or have a broker pick up the executed documents. The NC Secretary of State has what they call an eNotary, but "the process maintains the traditional safeguards of requiring the eNotary and the signer to be in the same physical location and for the identity of the signer to be verified by the eNotary." I've not used this service since Wells provides the service with my commercial checking account. For that reason, and because I only do a few closings a year, I've not seen the need.

For those who, like me, have not used an eNotary before, the steps provided by a national service are:

1. Upload or scan your document
Upload the full document (not just the signature page) as a .pdf or .docx file. Don't have the file saved? Use your mobile phone to scan and upload the document.

2. Create a Proof account
Your documents and transaction details will be securely stored in your account where you’ll also be able to initiate future notarizations and eSigns.

3. Verify your connection
A Wi-Fi enabled device with a camera is required for all notary meetings. Having a strong setup will ensure you’re set up for success.

4. Verify your identity
Proof uses identification verification technology to ensure a secure transaction. Answer a few questions about your past, take a photo of your ID, and we’ll confirm your identity in seconds.

5. Connect with a notary on a video call
Notaries typically get connected with signers in as little as 2 seconds and are available 24/7.

6. Access your completed document
View and share your signed documents anytime directly from within the Proof platform.

7. Download or send document to another person
Share your documents within seconds.

I would imagine that after you create an initial account, the process is quicker. 

Quote from @Antonio Patterson:

Quote from @Chris Martin:

Regarding "I currently have a holding company LLC created called Opal Capital Holdings back in March." Did you create this LLC through the NC Secretary of State? An NC SOS search shows that this entity (the LLC) is not registered and was not created in 2024. Did you maybe misspell it? 

An LLC is required by NC state statute to adhere to naming conventions specified in NCGS 55D-20. Name requirements. "Opal Capital Holdings" is not a viable LLC name. Per statute, the name: "must contain the words "limited liability company" or the abbreviation "L.L.C." or "LLC", or the combination "ltd. liability co.", "limited liability co.", or "ltd. liability company"." 

FinCEN won't apply if the LLC was not formed. In general, an LLC is a "reporting company" by FinCEN definition, and most real estate centric companies will not meet the "exemption" definition. See more details in the FinCEN Small Entity Compliance Guide. 

The holding company was created in the State of Wyoming and by a Prime Corporate agent who consulted on Tax benefits, did the filing, and will do other tax yearly fillings both with my W2 and the business. 

Apparently, your consultant did not see the need to register your company as a Foreign Business per NC statute. I am not an attorney, but I can read the list of requirements. "A Certificate of Authority is the legal authorization which a foreign entity must obtain in order to be able to conduct its affairs in this state." There are also exemptions to this filing requirement, listed here by the NC SOS: https://www.sosnc.gov/Guides/register_a_foreign_business/exceptions
I hope you can find one that fits.

The good thing is that RHA probably doesn't care if your company isn't registered in NC. Their application doesn't ask for many details, just like when I filled out a comparable form 20+ years ago, although I was legit. All money will go through your LLC, not you, or your selected management company. The LLC will need a bank account and the financial institution setting up your account, in NC, will need to see SOS filings. So, either file in NC or get a property manager. Or schedule a consultation with your attorney and ask what to do. $. 

Nathan has a great reply. When I started out a billion years ago, I bought in my own name and learned the ropes. Over time, I saw the benefits of (domestic) LLCs and built a few companies with many members. When you get there, let's talk. 

Regarding "I currently have a holding company LLC created called Opal Capital Holdings back in March." Did you create this LLC through the NC Secretary of State? An NC SOS search shows that this entity (the LLC) is not registered and was not created in 2024. Did you maybe misspell it? 

An LLC is required by NC state statute to adhere to naming conventions specified in NCGS 55D-20. Name requirements. "Opal Capital Holdings" is not a viable LLC name. Per statute, the name: "must contain the words "limited liability company" or the abbreviation "L.L.C." or "LLC", or the combination "ltd. liability co.", "limited liability co.", or "ltd. liability company"." 

FinCEN won't apply if the LLC was not formed. In general, an LLC is a "reporting company" by FinCEN definition, and most real estate centric companies will not meet the "exemption" definition. See more details in the FinCEN Small Entity Compliance Guide. 

I saw this in a story regarding an event in Las Vegas:

Marjorie Taylor Greene, speaking at a Donald Trump rally, tackled the topic of electric vehicles in a way that left many attendees puzzled. She boldly claimed, "If you think gas prices are high now, just wait until you're forced to drive an electric vehicle,"

I, like many others, doubt she has actually driven an EV let alone charged one. That is too bad, because with some understanding she may gain an appreciation for them when property used. I hope that happens. For those in BP Nation who don't know, EVs like my F-150 Lightning run 100% on electricity via batteries and do not use petroleum products as fuel. Other F-150 models can run on gas or diesel, but the Lightning runs on electricity-driven motors.

As for cost, my nuclear-powered Duke Energy NC Residential Service (RES) costs $0.11661 per kWh. At 100kWh to charge my truck yesterday, from about 15% charge to 95% charge, my cost was $11.66. That $11.66 allowed me to drive 250 miles. So, my cost per mile is ($11.66/250 miles) $0.04664/mile, or about $0.05 per mile. A nickel per mile.

The 2025 RAM 1500 (gas) gets 17-23 MGP which represents one of the best in its class for fuel efficiency. Well, at $0.05 per mile, a gallon of gas should be $0.85 to $1.15 to match what I pay in the EV MGP-equivalent. I'll stick to the Lightning... but I still have my long-paid-off 1996 RAM 3500 dually and 1999 RAM 2500 just in case (especially if I ever have to tow long distances.) 

Quote from @Richard Pennington:

I am in the raleigh north carolina area and was curious to know if there are any highly reputable attorneys and/or agents familiar with short sales. Been doing my due diligence to find some homes in the Raleigh area that are pre-foreclosured on as well as foreclosed. I have templates of contracts to set up but a direct contact to go over some things would be perfect. Any possible assistance plus advice on trying to make my first wholesale would make a big difference. Most of my knowledge is off of youtube for the most part. I will begin my cold calling after gathering enough leads to seek out to.

Thank you in advance 

Know your TAM - Total Available Market. Wake County had 33 foreclosures in the first half of 2024.
We've had 318 S-TR filings in that timeframe. These numbers are trivial compared to the 5 or so years after the Great Recession. For reference, Wake County had those kind of numbers on a daily basis (not 6-month basis like today) in 2010. I picked a random date of 3/22/2010, and on that day, there were 21 courthouse foreclosures filed.

I would expect the number of Short Sale (TAM) opportunities, today, to be practically zero. There is roughly (in NC) a 12-18 month lag between mortgage default and any legal proceeding. Home prices have generally gone up in the last several years making the opportunities for a short sale very small. Defaulting/ed owners can just sell, and generally quickly on MLS.

It's not that you can't wholesale a contract involving an owner in default, but as @Jonathan Greene pointed out, you better be prepared to close. And unless you are experienced, never offer to allow the owner to stay in the property per NCGS 75-120(3)d. Note too that in Wake County, unlike decades past, there is no meaningful "foreclosure discount" (defined as the fact that winning courthouse bid prices were generally (historically) much lower due to the forced sale feature of NC statutes and Deed of Trust Power of Sale clauses) and this is confirmed by a recent Fannie Mae study. 

Disclosures: this post is an anecdote about a Raleigh NC property for illustration purposes; the numbers presented are actual numbers from my Quickbooks report; the Rent-O-Meter price, T-Bill rates (in the links), taxes, insurance, and PM fees will change over time. 

For the past many months, I don't know anyone with more than, say, $5,000 in idle cash who isn't using Treasury Direct to get 5%+ on idle money; pick your term - short (4 weeks) or longer (52 weeks). 

Today, and a similar rate for the last several months, the yield (annualized) on a 4-week T-Bill is 5.22%. T-Bills are the safest investment in the world. I looked at the best-case scenario for a rental that I am selling (it's under contract) if a cash buyer bought it and placed it into service at a Rent-O-Meter average price, and the annual yield is 6.33%. That's not very compelling. The scenario: $295,000 purchase price (my list was $299,000), 100% occupancy, $1,900 monthly rent, with taxes ($1,856), insurance ($768), and property management (7%) the only expenses.  

We had 64 showings in a little over two weeks. I asked the listing agent how many investors viewed the property, but she didn't have a clear answer. She speculated "a couple." 

My point is that in a market where overall demand is unbelievably strong, the opportunity-cost numbers are not that strong for an all-cash, or any for that matter, acquisition relative to past history. 

The answer to the OP question: Yes. I thought everyone bought with cash. LOL!  And holding for 30 years? Maybe 27.5 is a better answer. 

PS: the buyer of my company's property is an owner-occupant. They got a good deal; I wish them well. 

can you provide insight to your phrase "I've got a friend who owns a rental in the Raleigh, NC area that a company just pays him a check every month for the right to rent it out." I have a SFR close to Wake Med that is nearing lease end and am all ears. What exactly do the terms of the agreement/lease specify?

Quote from @Elvis Witcher:

Hello Everyone,

Looking to get in contact with anyone who does land flipping or land wholesaling on the east coast. Primarily in North Carolina and Virginia. Currently in the process of developing a 10 acres in the Roanoke, VA area. In a few months I will be looking to purchase land between 5 to 15 acres. Any help would be greatly appreciated.

Thanks,

Is there a specific type of development activity you are looking for? Residential? MHP? Apartments? I am currently buying in SW Virginia, 5+ acres, with recreation, commercial, and development potential. I pass on lots of stuff (mostly on-market, though) so if we know each other's needs, we may be able to work together. 

Here is another data point about the Rocky Mount area. Zip code 27801 has, according to this article Where N.C. mortgage holders are underwater on their home loans, a state-high 10.9% of home loans considered "seriously underwater", Q1 2024. Per the article, the term "Seriously underwater" is defined as 25% or more owed above the total estimated market value of the property; Among zip codes with at least 2,000 homes with mortgages.

I'll let you in BP Nation decide if this potential financial loan distress would make the Rocky Mount area more or less attractive for a real estate investor. Personally, my investment funds will be targeted elsewhere for the foreseeable future.