How to Wholesale Real Estate in South Carolina (2024 Updated)
If you want to begin wholesaling houses in South Carolina, this article will give you the advice you need.
You will find information on the necessary contracts, marketing tactics, and additional resources for starting your real estate wholesaling venture in South Carolina.
So, continue reading to discover how to set up a real estate wholesaling business in South Carolina.
Is Wholesaling Real Estate Legal in South Carolina?
It is legal to wholesale real estate in South Carolina, but it’s crucial to follow the law diligently.
To ensure your business operates above board, it’s essential to know the risks of wholesaling real estate and understand South Carolina real estate wholesaling laws.
To gain a better understanding of applicable South Carolina laws, you should review the rules and regulations of the South Carolina Real Estate Commission.
As a wholesaler, you’re marketing the rights and obligations to a contract, and only licensed South Carolina real estate agents or homeowners can market a house.
Improper wording when marketing your contracts to end buyers is probably the most significant legal risk when wholesaling real estate.
Moreover, it’s advisable to have one of the best South Carolina real estate attorneys examine or create sample documents of a purchase agreement and assignment contract on your behalf.
How to Wholesale Real Estate in South Carolina?
In South Carolina, two wholesaling methods are utilized just as they are in other states: contract assignment and double closing.
It is important to note that living in South Carolina is not a requirement for wholesaling houses in the state.
With the convenience of technology in the modern era, the entire real estate wholesaling process can be conducted remotely from the comfort of one’s own home.
Contract Assignment
For individuals learning how to wholesale houses in South Carolina, the contract assignment strategy is typically the first approach they familiarize themselves with.
A purchase contract must be signed by both the investor and the motivated seller as if the investor were the actual buyer.
However, in reality, the investor is not obligated to purchase the property. The contract should include a clause that enables the investor to assign it to an end buyer, which will be their actual buyer.
Once getting the house under contract has been accomplished and an end buyer has been found, both the seller and the end buyer sign an assignment contract.
By doing so, the right to purchase the property is transferred to the end buyer.
In return for assigning the contract to them, the end buyer pays the wholesaler an assignment fee, which serves as the wholesaler’s profit.
This method eliminates the need for the investor to have the necessary funds to buy the home.
Typically, only a refundable earnest money deposit of one or two thousand dollars is required to complete a wholesale deal by utilizing this approach.
Double Closing
To achieve a complete understanding of everything you need to know about wholesaling real estate, it is necessary to master the double closing method, even though the contract assignment strategy is more commonly used.
The approach of double closing includes conducting two distinct closings: one with the seller and another with the end buyer.
This strategy is typically used by wholesalers who are receiving a significant assignment fee and do not want to disclose their profits to either the seller or end buyer.
There are both pros and cons of real estate wholesaling involved in this strategy. The primary benefit of double closing is that the wholesaler does not need to disclose their profits to either party.
However, the disadvantage is that the wholesaler must obtain transactional funding for the whole amount at which the property is sold if they do not have their own funds.
This type of funding can be obtained from one of the best South Carolina hard money lenders.
It is critical to work with a reputable title company that understands double closings and can facilitate them effectively. Include this step in your real estate wholesaling checklist.
Virtual Wholesaling
Irrespective of your location, you can practice virtual wholesaling in South Carolina.
Before securing your first property under contract, it is crucial to network extensively.
It is important to have a thorough understanding of wholesaling real estate step-by-step before endeavoring to handle the process from a remote location.
Before commencing the procedure, it is advised that you identify the following pair of crucial vendors:
1. A reliable contractor or home inspector in South Carolina who can provide you with rehab estimates for your under-contract properties, allowing you to analyze real estate deals effectively.
Always ensure that your contract includes an inspection contingency clause that permits your contractor to gain access to the property and provide a reliable estimate before proceeding.
2. Additionally, it is important to find a South Carolina wholesale-friendly title company that can facilitate your virtual closings.
To help manage communication between you, your buyer, and the seller, you can collaborate with South Carolina investor-friendly real estate agents.
To sign documents remotely before and during the closing, you will need to choose electronic signature software such as Dotloop.
How to Find Properties to Wholesale in South Carolina?
To operate effectively in South Carolina, it is crucial to have knowledge about finding properties to wholesale at a reasonable price that will attract potential buyers.
There are different types of motivated sellers who require fast cash and lack the resources to repair their property or address any legal issues, which may prevent them from selling it through conventional means.
Motivated sellers are property owners who are prepared to sell their properties at a discounted price.
To find distressed properties, we shall examine three strategies.
#1 Buy South Carolina Distressed Seller Leads
One option to find motivated home sellers is to use companies that sell leads to real estate investors and wholesalers.
This service is also offered by various real estate wholesaling software tools.
The leads collected include homeowner contact information and details about their property and situation making them look for a fast cash offer.
Some examples of leads that these companies specialize in include owners of abandoned homes, pre-foreclosures, property of divorcing couples, probate houses, and others.
These companies typically charge either a subscription fee or per lead.
The quality of leads offered by these companies can vary, and it’s important to choose a reputable company with a good track record of generating leads.
REB Leads, a program created by Real Estate Bees, is a provider of high-quality lead-generation services for real estate investors.
It offers affordable and highly converting motivated seller leads. Sign up for it now.
#2 Hire an Agency to Do Marketing for You
Wholesalers have the option to assign generating wholesale real estate leads and other tasks to professional agencies that specialize in marketing for real estate investors.
These agencies can create a personalized plan based on your budget and offer a range of services, including real estate website design, SEO for real estate investors, PPC ad management, content development, and social media marketing.
However, it is important to note that the time it takes to generate leads may vary depending on the strategy used.
While digital advertising yields faster results, SEO and content development take longer but may be more cost-effective long-term.
These agencies typically charge a monthly fee to handle multiple marketing campaigns.
Nonetheless, some agencies may underdeliver after enticing you to get their business.
If you are leaning towards hiring an agency, you have to be able to sift through an overwhelming sea of bad companies to find one that will serve you as advertised.
But since you are our reader, our team has already done all the heavy lifting for you. We’ve polled and surveyed thousands of our real estate wholesaler members and the overwhelming majority recommended Magnyfi, run by Jacob Hicks.
The service provided by Magnyfi is not cheap. But it is definitely worth it if you are serious about growing your real estate wholesaling business.
Go ahead and watch Jacob’s video presentation on the Magnyfi profile page discussing their methodical process they have been successfully helping other investors grow their businesses.
#3 Do Your Own Marketing by Yourself
If you have a limited marketing budget, you may need to take it in your own hands.
To start, you must create a real estate investor website designed for motivated seller lead generation, which can collect leads from various sources such as social media ads or online searches.
Selecting a website solution that is both user-friendly and search-friendly from among the best website templates and builders on the market is of utmost importance.
However, relying solely on a website may not be sufficient.
You may also want to explore offline methods, such as using bandit signs, driving around for potential properties, sending out real estate wholesaling postcards, looking through public records, networking with other professionals in the industry, and more to find motivated sellers.
How to Market South Carolina Wholesale Deals to Investors?
If you want to market South Carolina wholesale properties and find real estate investors, the best method is to have a list of cash buyers.
Hedge funds, real estate investing companies, and individual investors are just a few examples of cash buyers who may be on your list.
You can use several marketing strategies for wholesaling real estate to reach out to these and other types of real estate investors.
Since each type of cash buyer will have specific buying criteria, it is a good idea to have separate lists for each type to ensure comprehensive coverage.
Build Your Own Cash Buyers List
If you have a limited budget, you can still create a list of South Carolina real estate cash buyers by networking.
To do this, you can approach reputable South Carolina vendors who serve real estate investors, such as contractors who renovate properties for South Carolina real estate investors or South Carolina lenders who lend to them.
In addition, it is recommended that you participate in as many virtual real estate networking groups as possible.
Various real estate investor groups hold virtual meetings and are active on Facebook, making them a valuable resource.
Building a cash buyers list doesn’t happen overnight. It’s a continuous process. Fortunately, it can be significantly sped up by Real Estate Bees’ revolutionary invention — Property Marketplace Widget for Wholesalers.
It basically allows you to build your own cash buyers list on autopilot, and it’s the only online tool of this kind on the market.
What’s even more powerful is that this tool lets you syndicate your contracted properties directly to Real Estate Bees’ massive marketplace of wholesale deals for sale in South Carolina and instantly reach thousands of potential buyers!
Leverage Other People’s Cash Buyers Lists
One alternative way to obtain a list of companies that buy houses in South Carolina is to use a pre-existing list of cash buyers instead of creating one yourself, especially if you are pressed for time.
It’s worth noting that many prosperous South Carolina real estate wholesalers have invested years in building relationships with investors, so they don’t want to share it for free.
While this approach can help your business grow faster, keep in mind that the owners of such lists may require you to pay them up to 50% of your assignment fee.
If you want to avoid giving away half of your profits while using someone else’s cash buyers list, you can use a robust property syndication tool developed by Real Estate Bees to help wholesalers with the disposition.
The tool lets wholesalers leverage Real Estate Bees’ extensive list of South Carolina cash home buyers to blast their contracted properties for free.
To take advantage of this cutting-edge functionality, create your free account and list your contracted properties.
What Documents Are Needed for Wholesaling Real Estate in South Carolina?
Contract Assignment
When it comes to wholesaling houses in South Carolina, it’s important to have two distinct agreements in place: a contract for buying the property and an assignment contract.
The purchase contract is the first document, which is signed by both you and the seller, and includes essential information like the property address, purchase price, and the seller’s details.
After locating an end buyer, the second contract to sign is the assignment contract.
Both the buyer and seller must sign it, and this contract demonstrates transparency to both parties, indicating that you aren’t buying the property yourself.
To facilitate the closing process, the title company needs copies of both contracts.
Double Closing
As previously stated, wholesalers often use double closings to keep their profit margin hidden from both the seller and the end buyer.
To complete this type of transaction, you’ll need to submit two contracts to the title company: one for the wholesaler’s purchase of the property from the seller, and another for the end buyer’s purchase of the property from the wholesaler.
Moreover, if you don’t have enough funds to cover the entire cost of the property, you may need to obtain transactional funding, which is a short-term loan lasting between 24-48 hours.
This loan will allow you to close the deal with the seller first before proceeding to close with the end buyer.
Do You Need a License for Real Estate Wholesaling in South Carolina?
While it is not mandatory to have an active South Carolina real estate license for practicing wholesaling, wholesaling with a real estate license can offer safeguarding for both you and your business.
If you have a license, you can promote a property as both a wholesaler and a real estate agent.
Joining a South Carolina real estate brokerage is necessary to become a licensed real estate agent.
However, it’s important to note that some brokers may not allow their agents to engage in wholesaling.
To ensure that you find a brokerage that is welcoming to wholesalers, it’s recommended that you interview different brokerages.
You can refer to our guide on how to get a real estate license in South Carolina for more information concerning obtaining a license.
What Is the Age Requirement for Real Estate Wholesaling in South Carolina?
Real estate wholesaling in South Carolina does not have any age limitations.
Nevertheless, to enter into a legally binding agreement in the United States, you must be at least 18 years of age.
This implies that if you are below the age of 18, sellers and title companies will not cooperate with you.
However, if you are below the legal age requirement, you can work together with someone who is of legal age to sign contracts on your behalf.
Do You Need an LLC for Wholesaling Real Estate in South Carolina?
While it is not required in South Carolina to have an LLC for wholesaling, it is important to note that choosing the right business entity can provide extra protection for your enterprise.
Establishing an LLC or any other form of corporation is a critical aspect of any real estate asset protection strategy.
When you operate as an LLC, you become eligible for business loans, which is not possible if you’re wholesaling as an individual.
Additionally, establishing your business as an LLC can offer tax benefits that may not be available if you use your personal name.
This can also build trust with home sellers and increase your reputation as an investor.
Furthermore, it can add professionalism to your business and improve your standing in the South Carolina real estate investing community.
How Much Money Do You Need to Wholesale Real Estate in South Carolina?
Compared to other real estate investment methods, wholesaling is a strategy requiring the lowest capital investment.
However, you will need to spend some money on marketing to find distressed sellers and potential buyers.
There are ways to minimize these costs that have been discussed earlier.
Nevertheless, you will be required to make an earnest money deposit of $1k-2k.
And if you are doing a double closing, you will likely also need transactional funding, unless you can pay the whole amount for the house in full with your own cash.
Since transactional funding is a short-term loan, having a high credit score or job history is not a requirement to qualify.
To find the best transactional funding option in South Carolina, you can use the “request financing” form provided by Real Estate Bees.
This allows you to receive quotes and compare rates from multiple lenders with just a few clicks.
How Much Money Can You Make Wholesaling Real Estate in South Carolina?
The profit potential in South Carolina’s real estate wholesaling market is directly related to the level of effort you’re willing to invest.
For instance, a typical property in the area that costs $150,000 could potentially generate an assignment fee ranging from $10,000 to $15,000.
The rest of the profit depends on how quickly you can scale up your business.
Is the South Carolina Real Estate Market Good for Wholesaling?
The degree of achievement possible in South Carolina’s real estate wholesaling industry is mainly impacted by the particular city or neighborhood where you plan to operate.
Nonetheless, to get a comprehensive understanding, you can analyze the patterns in the South Carolina real estate investing market.
What Are the Best Cities for Wholesaling Real Estate in South Carolina?
Wholesaling real estate in South Carolina can be a lucrative business, but the level of competition varies across different cities in the state.
Some of the most competitive cities for real estate wholesaling in South Carolina include Columbia, Greenville, and Charleston.
These cities are popular among investors due to their growing populations, strong job markets, and attractive housing markets.
With the right skills and knowledge, wholesaling real estate in these cities can be a rewarding venture.
Below are the 10 best cities to wholesale real estate in South Carolina:
How to Learn Real Estate Wholesaling in South Carolina?
While we have explained wholesaling real estate 101 in South Carolina, it is advisable to broaden your knowledge before making any major moves.
The following are some of the best ways to start wholesaling real estate by expanding your knowledge first.
Courses
Some wholesalers possess extensive knowledge and enthusiasm for teaching others how to attain financial independence, and they may even create comprehensive educational curricula.
On the other hand, many dishonest individuals target inexperienced and novice wholesalers.
To steer clear of these con artists and discover top-notch training, Real Estate Bees offers a catalog of the best real estate wholesaling courses.
Real Estate Wholesaling Mentors
Obtaining the services of a mentor for real estate wholesaling is highly recommended as they can offer you in-depth guidance.
By having an expert oversee your activities, you can prevent expensive errors and maintain your drive and enthusiasm.
The best South Carolina real estate investment mentors or coaches can aid you in creating a business plan, setting achievable goals, and choosing effective marketing strategies.
Books
If you want to educate yourself about wholesaling real estate without spending a lot of money, reading books is a great choice.
Additionally, you can explore the best real estate wholesaling books list for further recommendations.
Investor Clubs
In order to learn from experienced members with hands-on experience, you can join multiple local investor clubs in South Carolina.
Real Estate Bees’ real estate investor clubs in South Carolina list offers a range of reliable clubs to consider joining.
Many seasoned investors are passionate about mentoring, and you may encounter someone who can assist you in maximizing your business and achieving faster profitability.
Getting involved in these clubs is also a dependable way to find cash buyers for wholesaling real estate.
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About the Author
With over 20+ years of experience in real estate investment and renovation, Brian Robbins brings extensive knowledge and innovative solutions to the HouseCashin team. Over the years Brian has been involved in over 300 transactions of income producing properties across the US. Along with his passion for real estate, Brian brings with him a deep understanding of real estate risks and financing.