Hey there, Cam Dunlap here\u2026<\/p>\n
Got into an interesting discussion during my last Q&A session that really \ud83d\udd25 fired me up.<\/p>\n
One of my students was asking about South Carolina's new anti-wholesaling law \u2014 you know, the one that bars you from marketing a house you don't own yet, which pretty much kills the classic contract-and-assign wholesale deal there.<\/p>\n
Most investors I talk to are wringing their hands about it.<\/p>\n
Me?<\/p>\n
I'm seeing opportunity<\/em> where everyone else sees obstacles.<\/p>\n Here's what I told my student that seemed to surprise them:<\/p>\n I actually see South Carolina's restrictive law as good.<\/p>\n Not bad. Good.<\/p>\n I know that sounds crazy, but hear me out\u2026<\/p>\n The harder something is to do, the fewer people who do it, because when the going gets tough, it's not like it used to be. Most folks lay back on the couch.<\/p>\n So I like markets that present challenges because it eliminates competition massively.<\/p>\n While everyone else is complaining about how unfair the new regulations are, I'm figuring out how to work within them and having the field mostly to myself.<\/p>\n Think about what happens when any market gets difficult\u2026<\/p>\n Whether it's new regulations, market downturns or increased competition \u2014 most people do the same thing.<\/p>\n They quit.<\/strong><\/p>\n This isn't new human behavior.<\/p>\n But here's what's interesting \u2014 it's gotten worse over the years.<\/p>\n When the going gets tough nowadays, the tough don't get going.<\/p>\n They get going to the couch<\/em>.<\/p>\n I've been in this business since 1993, and I can tell you that every single time the market has thrown me a curveball, the same thing happens.<\/p>\n The herd thins out dramatically.<\/p>\n Let me break down what happened in South Carolina for those who haven't heard.<\/p>\n In 2024 they passed a law that bars you from marketing a residential property to a different buyer before you take legal ownership of it. That's what South Carolina now calls \"wholesaling.\"<\/p>\n Here's the twist. On paper, the law says assigning a contract isn't wholesaling by itself. But the Real Estate Commission has said that if you assign a contract AND market the property \u2014 even just sharing the address or photos \u2014 and expect to get paid, that's wholesaling.<\/p>\n And a real estate license doesn't get you around it. Brokerage firms and their agents are barred from wholesaling too.<\/p>\n So the traditional wholesale model where you put a property under contract and then market it to your buyers list?<\/p>\n That's out.<\/p>\n Most wholesalers threw up their hands and said, \"Well, I guess we can't wholesale in South Carolina anymore.\"<\/p>\n And you know what? That's exactly the response I was hoping for.<\/p>\n See, while everyone else was complaining, I was strategizing.<\/p>\n There's always a way if you're willing to think differently.<\/p>\n In South Carolina's case, which is unusually extreme, the play I use is to actually buy the house \u2014 with the seller financing it.<\/p>\n We buy the property in as-is condition just like any other wholesale deal. But instead of using an assignment or a simultaneous close, we actually take title \u2014 the deed goes in our name at closing \u2014 and the seller carries the financing. (Not a contract for deed or a lease option where the seller keeps legal title, since the law turns on legal ownership.)<\/p>\n The seller gets paid on terms that work for them, you make your spread, and you're doing it as the owner instead of marketing a house you don't own.<\/p>\n Now, this isn't a magic loophole. It's a real purchase. You're on title, you owe the seller real money, and you're paying for two closings. And regulators look at what you actually do, not what you call it, so a wholesale deal wearing a costume is still a wholesale deal.<\/p>\n Talk to a South Carolina real estate attorney before you structure any deal there.<\/p>\n Here's my contrarian mindset in a nutshell:<\/p>\n I actively seek out<\/em> difficult markets and challenging situations. Not because I'm a masochist, but because I understand something most people don't.<\/p>\n Difficulty is a filter. It screens out the uncommitted, the lazy and the easily discouraged.<\/p>\n What's left?<\/p>\n A small group of serious players who are willing to do what it takes.<\/p>\n Would you rather compete against 100 wholesalers for every deal, or against 5?<\/p>\n Would you rather fight for scraps in an \"easy\" market, or feast in a \"difficult\" one?<\/p>\n Right now, we're seeing this play out in real time across the country.<\/p>\n There are more notices of default being filed today and more yesterday than the day before and on and on.<\/p>\n I read an article about Cape Coral, Florida recently. Prices are falling pretty rapidly there. Investors are hightailing it out of there trying to be the first one to the door.<\/p>\n You know what I see?<\/p>\n I see a lot more opportunity<\/em><\/strong> happening out there right now.<\/p>\n And here's the beautiful part \u2014 there's a relatively small amount of competition in the market at the moment too.<\/p>\n It's this interesting sort of alignment of swelling opportunity coming after a period of falling competition.<\/p>\n Most people see danger \ud83d\udea8\u2026 I see dollar signs. \ud83d\udcb5<\/p>\n Developing this mindset isn't natural for most people. We're wired to seek comfort and avoid difficulty.<\/p>\n But in business, that wiring will keep you broke.<\/p>\n Start small. Next time you hear about a new challenge in your market \u2014 a new regulation, a market shift, increased competition \u2014 catch your initial reaction.<\/p>\n Is it negative? Probably.<\/p>\n Now flip it.<\/p>\n Ask yourself: \"How is this actually good for me? How will this thin out my competition? What opportunity is hidden in this obstacle?\"<\/em><\/p>\n This isn't toxic positivity or wishful thinking. It's strategic thinking.<\/p>\n Every challenge creates winners and losers. The difference is how you respond to it.<\/p>\n One more thing I want to mention\u2026<\/p>\n This contrarian approach is exactly why I'm a big believer in working multiple markets.<\/p>\n All the more reason to be wholesaling in multiple markets.<\/p>\n That diversity is actually a good thing. When one market gets \"difficult\" and everyone abandons ship, you can increase your focus there while maintaining your other markets.<\/p>\n You become like a surfer who actually seeks out the bigger waves while everyone else heads for calmer waters.<\/p>\n Sure, the big waves are more challenging. But they're also where the real ride is!<\/p>\n So here's my challenge to you\u2026<\/p>\n Stop running from difficult markets and challenging situations. Start running toward them.<\/p>\n When you hear other investors complaining about new regulations, market conditions, or increased competition, that should be music to your ears.<\/p>\n It means the herd is about to thin out.<\/p>\n It means opportunity is about to present itself to those brave enough to stick around.<\/p>\n Remember, in real estate like in life, the easy path is usually the crowded path. And the crowded path rarely leads to extraordinary results.<\/p>\n If you're ready to learn how to find profitable opportunities in markets all across the country, check out my Real Estate Data Feed<\/a>\u00a0now and take a 100% risk-free test drive today!<\/p>\n Regards,<\/a>When Everyone Zigs, I Zag<\/strong><\/h2>\n
<\/a>The Couch Potato Effect<\/strong><\/h2>\n
\n
<\/a>South Carolina: A Case Study in Opportunity<\/strong><\/h2>\n
<\/a>My Play: Take Title First (With Seller Financing)<\/strong><\/h2>\n
\n
<\/a>Why Challenges Are Gifts in Disguise<\/strong><\/h2>\n
<\/a>The Current Market: A Perfect Example<\/strong><\/h2>\n
<\/a>Building Your Contrarian Muscle<\/strong><\/h2>\n
<\/a>Multiple Markets, Multiple Opportunities<\/strong><\/h2>\n
<\/a>Your Next Move<\/strong><\/h2>\n
Cam Dunlap<\/p>\n