SELLING LAND IN NORTH CAROLINA
WHAT TO WATCH OUT FOR WITH "LAND BUYERS" IN NORTH CAROLINA
MOST LAND BUYING COMPANIES IN NORTH CAROLINA ARE ILLEGAL
THE TRUTH ABOUT LAND BUYING COMPANIES IN NORTH CAROLINA
Selling land in North Carolina? Here is what to watch out for with “Land Buyers”in North Carolina. If you are a real estate owner in North Carolina or anywhere else for that matter, you are probably sick to death of receiving letters, postcards, calls, texts and other solicitations for your real estate, particularly North Carolina land. Even worse are the unsolicited “offers” for absurdly low prices for your land. Did you know that many of these land “buyers” are operating illegally? Yep, MOST LAND BUYING COMPANIES IN NORTH CAROLINA ARE ILLEGAL.
First, a little background. Over the last 4-5 years, especially since covid, North Carolina land has become a white hot commodity. Of course when anything becomes “popular” or “collectable” the dealers, crooks and pinhookers come out in full force to start trying to capitalize on it. That is simply what is going on now with land “flippers and “wholesalers” and boy are they out in huge numbers. There are literally tens of thousands of land “investors” pouring out of the woodwork, trying to steal your land to make a profit. It is has become an epidemic nuisance for anybody who owns land. Due to the thousands of resources online, the fact that no capital is needed to get started ( yep, that is where the model falls apart and becomes illegal), and the size of the potential return, everybody and his momma’s uncles and nephews are out trying to hustle land. Read on to learn why it is ILLEGAL in NC and many states depending on how the “investors” do it.
There will always be legitimate land investors and buyers. NCLANDBUYERS is a perfect example. We have been buying land to own and use long term for over thirty years. The issue is with the PRIMARY business model that most of the companies that are soliciting your land are using today. Let’s face it, to buy land in this economy, in a fast growing state (or really any state) takes alot of capital. To buy multiple tracts takes an enormous amount of capital. Most of todays land “investors” actually have ZERO money and put ZERO money into deals which is ironic since typically “investing” means injecting money or capital into an asset. These “investors” are not investors, they are crooks, trying to steal the value of your land.
WHO ARE THE ILLEGAL BUYERS?
99.9% OF ALL “INVESTORS” SOLICITING YOUR LAND TODAY ARE SELF DESCRIBED AS “WHOLESALERS”. THIS MEANS THEY ARE TRYING TO ENTER INTO A REAL ESTATE CONTRACT TO BUY YOUR LAND. ONCE THEY DO THAT, THEY TURN AROUND AND TRY TO SELL YOUR CONTRACT (THIS IS CALLED AN ASSIGNMENT OR ASSIGNING, ALSO KNOWN AS WHOLESALING) TO ANOTHER BUYER FOR A PROFIT, NEVER EVEN HAVING TO PUT ANY MONEY OF THEIR OWN INTO THE DEAL. INVESTING IN REAL ESTATE (ACTUALLY BUYING AND CLOSING) IS OBVIOUSLY NOT ILLEGAL. WE ARE SPECIFICALLY TALKING ABOUT ‘WHOLESALERS” WHICH MOST OF THE LAND “INVESTOR” MARKET CONSISTS OF NOW UNFORTUNATELY.
HOW IT WORKS AND WHY IT IS ILLEGAL
THIS HAS BEEN LABELED “EQUITY THEFT” BY MANY STATES. IN NORTH CAROLINA, SOUTH CAROLINA AND MANY OTHER STATES, THIS IS ILLEGAL. ENTERING INTO A PURCHASE AGREEMENT, WITH NO INTENT OF CLOSING, FOR THE SOLE PURPOSE OF SELLING THE CONTRACT FOR A PROFIT, WITHOUT A REAL ESTATE LICENSE, IS ILLEGAL IN NORTH CAROLINA, PERIOD. READ MORE
NOT ONLY DOES THIS LEAVE A BAD TASTE IN THE SELLERS (YOUR) MOUTH, IT IS OFTEN CONFUSING TO THE SELLER (YOU) AND THE POTENTIAL ULTIMATE BUYER, ROBS THE SELLER OF THEIR EQUITY SINCE MOST OF THESE CROOKS ARE TRYING TO BUY YOUR LAND WELL BELOW MARKET VALUE IN ORDER TO RE SELL THE CONTRACT AT MARKET VALUE, AND CREATES A LOGISTIC NIGHTMARE AS WELL AS OPENS THE DOOR TO LAWSUITS AND MANY OTHER ISSUES AND CONFRONTATIONS. THE MAIN ISSUE IS MANY OF THESE DEALS DO NOT CLOSE SINCE THE LAND BECOMES OVER PRICED WITH SO MANY MIDDLE MEN AND THEN THE CONTRACT DIES WITH THE ORIGINAL SELLER (YOU) HAVING WASTED TIME AND ENERGY TRYING TO SELL YOUR LAND UNSUCCESSFULLY. MOST OF THE DEALS ARE STRUCTURED WITHOUT THE SELLER (YOU) EVER KNOWING WHAT THE “INVESTOR” IS TRYING TO DO. EVEN WORSE, THESE INVESTORS MANY TIMES TARGET ELDERLY, INEXPERIENCED OR DISADVANTAGED OWNERS WHO DO NOT UNDERSTAND WHAT THEY ARE ENTERING INTO OR WHAT THEIR LAND IS REALLY WORTH, OR WHO ARE SIMPLY HAVING HARD TIMES AND FALL FOR THE EASY SALE.
WHAT TO WATCH OUT FOR
THANKFULLY THESE SCAMS ARE EASY TO SPOT. THEY ALL FOLLOW VERY SIMILAR PATTERNS, METHODS AND USE THE SAME RESOURCES.
UNSOLICITED OFFERS – UNSOLICITED WRITTEN OFFERS ARE GENERALLY “WHOLESALERS”. AVOID
NO EARNEST MONEY – “WHOLESALERS” DO NOT WANT TO RISK ANYTHING SINCE THEY KNOW THE DEAL MAY NEVER SELL. ANY LEGITIMATE BUYER WILL OFFER AN EARNEST MONEY DEPOSIT WITH THE CONTRACT. AVOID DEALS WITH NO DEPOSIT. READ MORE
SOLICITATIONS VIA TEXT MESSAGE, FOREIGN SOUNDING PHONE CALLS OR LETTERS OR POSTCARDS – NOW, NCLANDBUYERS ACTUALLY DOES SEND OUT INFORMATION POSTCARDS FROM TIME TO TIME, SO POSTCARDS ARE NOT ALWAYS A RED FLAG BUT ANY UNSOLICITED OFFER TO PURCHASE WITH A PRICE ALREADY INCLUDED IS A HUGE RED FLAG, SO ARE PHONE CALLS FROM FOREIGN SOUNDING CALL CENTERS OR TEXT MESSAGES.
INVESTORS GENERALLY USE WEBSITES FROM COMPANIES NAMED CARROT, LEAD PROPELLER OR OTHER COMPANIES THAT CATER TO WHOLESALERS. ALL YOU HAVE TO DO IS GOOGLE “NORTH CAROLINA LAND BUYERS” OR ANY SUCH OTHER SEARCH TERM AND YOU WILL SEE HUNDREDS OF THESE ‘INVESTOR” WEBSITES. TAKE A LOOK AND SEE HOW MANY OF THEM LOOK EXACLTY THE SAME AND HAVE THE SAME WEBSITE DESIGN COMPANY NAME AT THE BOTTOM. YEP, MANY OF THEM BUY THE SAME WEBSITE, DEVELOPED TO TARGET LAND OWNERS.
AND THIS IS THE BIG ONE!!! DO NOT, UNDER ANY CIRCUMSTANCES, ENTER INTO A SALES AGREEMENT THAT CONTAINS AN ASSIGNMENT CLAUSE!! THIS CLAUSE GIVES THE “INVESTOR” PERMISSION TO ASSIGN (SELL) YOUR CONTRACT TO ANOTHER BUYER. WITHOUT THIS CLAUSE, THEY ARE PROHIBITED FROM DOING SO BY YOU. EVEN WITH THIS CLAUSE IT IS ILLEGAL FOR THEM TO TRY AND RE SELL THE CONTRACT BUT THE CLAUSE IS PROOF OF WHAT THEY ARE TRYING TO DO.
The Take Away
EVEN WITH THE EPIDEMIC PROPORTIONS OF THE LAND “WHOLESALING” RACKET, THERE ARE STILL LEGITIMATE LAND INVESTORS WANTING TO BUY LAND. NCLANDBUYERS IS ONE OF THESE INVESTORS. WE ARE CASH BUYERS, WE WILL CLOSE ON YOUR LAND, WE WILL NOT ASSIGN YOUR CONTRACT, WE BUY LAND TO ACTUALLY OWN AND USE LONG TERM, WE CARE ABOUT OUR COMMUNITIES AND LOCAL NEIGHBORS, AND SINCERELY WANT TO BE GOOD STEWARDS OF THE LAND AND NATURAL RESOURCES. WE BUY TO OWN LONG TERM SO WE PAY WHAT LAND IS WORTH, NOT A RIDICULOUS DISCOUNTED PRICE. PROFIT IS NOT OUR MOTIVE SINCE WE ARE NOT BUYING TO SELL THE LAND OR THE CONTRACT. WE HAVE BOUGHT AND OWNED LAND FOR OVER THREE DECADES AND PLAN ON CONTINUING TO PURCHASE QUALITY AT FAIR MARKET PRICES. OUR GOAL IS FOR BOTH BUYER AND SELLER TO BE ABLE TO LOOK BACK AND FEEL GOOD ABOUT THE TRANSACTION.
NCLANDBUYERS greatly appreciates the opportunity to discuss your land with you. If you are interested in selling your land and would like a serious, fast offer, please fill out the form below. If you have any other land needs we are more than happy to help. Even if we do not buy your land, we are always happy to help in any way we can. Just reach out to let us know how we can help or if you just want to chat about North Carolina land!