HOUSINGNEWS REPORT
SPOTLIGHT: NORTH CAROLINA
Let the property ride. The appreciation rates here aren’t very exciting. You’re really looking to hold that property for cash flow and have the renter pay the mortgage. Compared to a bank account that gives you nothing, it’s not terrible.” For veteran real estate investor Larry Goins, North Carolina is not a growth market in the same way as Las Vegas, Denver, Phoenix or California. “Typically in the Carolinas — like in a lot of the heartland — you’re not buying for appreciation. The way most investors look at the Carolinas is buy it, put some sweat equity into it, and rent it out,” said Goins who lives in South Carolina but has worked both Carolinas for many years. That’s not to say there are no areas in the state that attract investors for their appreciating values. The Raleigh-Durham
he explained it, a lot of times those investors aren’t local.
South Carolina every day and some MLS homes too,” he countinued. “I’m just making offers based on my formula and what I think I can pay for a property. I’m getting them accepted in the smaller towns, and not getting them accepted in the bigger areas because of the competition.” When he does land a deal these days, Goins either wholesales the property out to another investor, does a lease option deal or sells it using seller financing. Crazy in Charlotte Being in a seller’s market, Realtor Tijuana Smith with Coldwell Banker in Charlotte prepares her buyer clients for dealing with the pressure of having a bidding war on every property. “It’s crazy right now. Under $100,000 it’s definitely a war zone,” Smith said. “Selling is automatic. Buyers are competing with
Local investors are looking to buy at a discount because the home needs repairs. They put some sweat equity into it to fix it up, and then hold onto the property and rent it out — maybe eventually flipping it in a few years. Goins focuses his attention on buying HUD properties directly from the MLS. His strategy these days, as he puts it, is to “go deep or go wide.” “Going deep means to dig deeper in that market to find deals in the area,” he said. “You may have to use multiple ways to find deals. If more people are buying from HUD and off the MLS, I’m going to have to use bird dogs, bandit signs and run my own ads.”
and Asheville areas are examples he points to in that regard. Still, as
“Going wide means I continue to make offers on every HUD house in North and
Typically in the Carolinas –- like in a lot of the heartland –- you’re not buying for appreciation.”
Larry Goins Investor and Founder of The Goins Group
ATTOM Data Solutions • P20
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