If you’re a real estate investor in South Carolina and you are wholesaling properties, the Labor Licensing Regulation Department otherwise known affectionately here at LLR, has come out and said that if you are wholesaling and then advertising expecting to get paid a commission, then you are by definition a “broker” and licensing is required. Don’t take this post and my comments as legal advice. I’m passing along information published by LLR. Be sure to consult with your own legal counsel.
Be sure to read page 3 on wholesaling of the LLR May 2022 Newsletter.
“At recent Commission meetings, there have been discussions regarding this wholesaling trend,
or the marketing of assignable contracts/equitable interests in real property by individuals who
are not the legal owners of the properties. The Commission has interpreted that the advertising
of real property belonging to another with the expectation of compensation falls under the
statutory definition of “broker” in S.C. Code Ann. § 40-57-30(3) and requires licensure. If
unlicensed individuals are advertising these real property interests publicly with the expectation
of compensation, the Commission has directed that Cease and Desist Orders be issued against
those individuals to stop them from engaging in unlicensed practice.”
Greenville is booming no doubt. It’s getting more attention from all over the place it seems. Is it a great place for real estate investors? I think it’s increasingly becoming so. One thing to remember here is that real estate investors typically pay about 3x the property taxes than a homeowner would pay. So on a $350,000 where the property taxes might be $1,700-$2,000, the investor property is going to be between $5,000 – $6,000 per year.
But that said, it’s a strong rental market with strong demand. Check out this article from Roofstock as they look at Greenville, SC from a real estate investment perspective. It’s very informative.