All Forum Posts by: Jason Toudt

Hi everyone,

I recently searched the forums for something like this that can be used as a mental "aid" for new investors to understand the steps that need to be taken before, during, and after purchasing a short-term rental. I couldn't find a good one, so I decided to make one myself.

** DISCLAIMER: I'M NOT A PROFESSIONAL INVESTOR AND THIS DOCUMENT IS NOT COMPLETE **

Sorry for the caps, just wanted to make that clear. I made this to use as an aid for myself, and will continue to add to it overtime. So, since it's on Google Docs, it'll constantly update and be useful to anyone who sees it here. ALSO, if you have any useful/beneficial suggestions for things to add or take away, please make them in the comments below!

I hope this is beneficial to others, as much as I hope it will benefit me. I just like having a checklist when tackling a complicated situation, and I know other people likely feel the same way!

Link to Document:
https://docs.google.com/docume...

@David M.

Thanks for the reply! You would be correct, we hold broker's licenses here in NC, but the way agency is structured here is with a Broker-In-Charge (BIC) essentially serving the same purpose as a Broker in other states. I absolutely plan on talking to my BIC about this.

On the topic of wholesaling, it is absolutely legal in NC. However, to your point about the contract, we wouldn't necessarily have to perform the contract in the event of not finding a buyer, IF the contract has a clause(s) allowing the buyer to back out prior to a certain date. In NC, that would be equivalent to something like a Due Diligence period, or an Escrow period in other states (I believe). As long as the terms of the contract are clearly laid out and met, there should be no ethical issue, regardless of whether we are members of the Association. Correct? Both performing the contract to purchase the property, and backing out of the contract within the/an agreed upon time frame would be considered ethical in either scenario. At least that's how I interpret it.

Would you agree?

I would say... it depends.

A wholesale deal is still a type of real estate transaction where the seller is going to be selling the house. The seller always has full rights to sell their property whenever they would like, however, depending on state laws, the tenant may have rights to have their lease terms honored by the new owner. I would just make sure you disclose to any potential buyers that there is a tenant living in the house at the time, and whether or not their lease terms need to be honored.

Context

I'm a licensed real estate broker in North Carolina, and a member of the local and national REALTOR® Associations. I also want to start investing, and from what I've been learning from the podcast, books, and other sources, I believe the route I'd like to start in is wholesaling.

The Question
Is there any rule in the REALTOR® Association Code of Ethics and Standards of Practice that would prevent a REALTOR® from participating in/conducting wholesale deals? Since it is a type of transaction that typically does not involve any type of representation and will usually use/require contract forms other than the ones provided by the Association.

I may be overthinking this, but I'd love to hear your thoughts/experiences!

Hi Vinh!

I'm a Real Estate Broker in the Charlotte area, and have been a resident of Union County (SE of Charlotte) for over 16 years. I'd love to answer any questions you have about the area! I know Union County has historically seen a lot of growth from Charlotte residents leaving the city in search of lower taxes and lower price tags, and there have been a number of additions in infrastructure that point to further accelerated growth in the near future!