All Forum Posts by: Dalton Summers

Came across this recent article from January 31, 2024 copied below:

"Ohio REALTORS® have also heard more concerns about the practice of real estate wholesaling and how it robs vulnerable Ohioans of equity in their homes. In response, Ohio REALTORS® worked with Senator Andy Brenner (R-Delaware) to introduce SB 192 to regulate wholesaling activity and require disclosure be provided to homeowners before they enter into a contract. In urging committee members to support SB 192 “Wholesalers deceive vulnerable homeowners into believing that the wholesaler is purchasing the property and they capitalize off a homeowner’s lack of knowledge about the value of their home. Their business model depends on obtaining a property at the lowest price possible, so they offer far below market value hoping to be able to re-sell the contract for the actual market price, depriving Ohioans from equity in their home,” said Huffman."

Additional information about SB 192 can be found through the following link: Senate Bill 192 | 135th General Assembly | Ohio Legislature

This content is copyright 2024 Ohio REALTORS. Read more at: https://www.ohiorealtors.org/blog/1925/ohio-realtors-testifi...

I'm not an attorney and this is not legal advice, but I believe wholesaling is still legal in Ohio. The Division of Real Estate frowns upon it, but I'm not aware of any illegality of assigning a contract from one person to another. I'm told the issue is that it's hard to not step into "practicing" real estate when you're trying to share information about the property that you have under contract. If you're a licensed agent, you should NOT be involved in wholesaling since it's' obviously counterintuitive to a client's best interests - selling the home for the most money. Alternatively, a licensed agent could do a "net listing" with a Seller. That practice is also discouraged.

I think Greenville is a fantastic market and it's one reason we moved here a few years ago. That, and the warm weather. It always seems to be in the news as a "top" market, etc... Regardless, I think it's best to invest in what you know. Why invest elsewhere when you already know your current market. Being an absentee landlord can be a nightmare if you have a property that's 1+ hours away. Much easier to drive over and fix the problem yourself in most cases. Regarding zoning, there could be plenty of things to be mindful of. For example, can I split this 3 acre parcel and put another home on the remainder? Or, can I tear down this large ranch, split the parcel, and put two homes here? Can I put an accessory dwelling unit (ADU) on my property and what are those requirements? That's probably the most recent update and here's a link to some FAQs: https://www.greenvillesc.gov/FAQ.aspx?QID=636. Or, can I AirBnB in this area? See link: https://www.greenvillesc.gov/1572/Short-Term-Rentals

If you're renting, I'd suggest moving into the rental property or buying your first home. Any time you spend renting is mostly a waste. Ultimately, I don't see why you don't buy both your own first home and the family rental within the year. Could potentially assume the loan (if there is one) on the family rental property. They could do a gift of equity for your down payment. Seller financing is great too which is why it might make more sense to purchase it second. You'll lose the first-time homebuyer perks once you take title to the property, but that's not too big of a fuss. That, and it won't be an arms length transaction anyway so that will probably exclude you from being eligible from some of the down payment assistance (DPA) programs or mortgage credit certificate (MCC). If you're going to buy a different property, I'd suggest looking into DPA programs to start. Take advantage of them if you qualify. I've got a DPA loan that is an immediately forgivable grant for the entire 3.5% down payment on an FHA loan. I think it's incredible. You're just going to turn around and refinance it in a year or two anyway when rates come down. It doesn't have a first-time homebuyer requirement and it's eligible for duplexes. I hope some of that makes sense. Just give me a shout with any questions.

Might be able to do something if you're still 620+, but need more info. Give me a shout if you want to discuss. Local to Greenville here.

I wouldn't worry about having to pay PMI regardless of whether you purchase using Conventional or FHA financing. You'll probably just end up refinancing it in a year or two anyway. The better question might be how much will that home appreciate if you're waiting to save up 20%?