Real estate in North Carolina is booming — and whenever money starts flowing, scammers follow.

Over the past few years, we’ve seen a spike in:

• Fake “cash buyers”

• Illegal assignment operations

• Unlicensed people performing brokerage activities

• Investors tying up properties they can’t actually close

• Wholesalers using bait-and-switch tactics

• Online companies pretending to be local buyers

• Individuals making offers they cannot legally fulfill

And the sad truth?

Many homeowners fall victim simply because they don’t know the law.

This blog exists to protect you — whether you’re a homeowner, landlord, investor, or even a wholesaler trying to stay compliant.

Let’s break down what you need to know.

🔥 First: Not All Wholesalers Are Scammers (But Many Scammers Call Themselves Wholesalers)

Wholesaling done correctly is legal in NC.

Wholesaling done incorrectly is unlicensed brokerage activity — a charge the North Carolina Real Estate Commission takes VERY seriously.

Here’s the difference:

✔ A Compliant Wholesaler:

• Puts a property under contract

• Discloses their role

• Assigns their equitable interest

• Does NOT market the property itself

• Does NOT negotiate on behalf of a seller

• Does NOT act like an agent

• Has real investor relationships

• Understands contract law

❌ A Fake or Illegal Wholesaler:

• Never puts the property under contract

• Markets a home they do not own

• Pretends to be the seller

• Pretends to represent the seller

• Collects deposits illegally

• Ties up deals they can’t close

• Lies about cash backing

• Disappears when problems arise

Most scams fall into the second category — and they’re getting more common.

🔥 Red Flag #1: They Want to “Market Your Property” Without Being Licensed

In NC, you cannot:

• Advertise someone else’s property

• Market a home

• Create a listing

• Negotiate terms

• Present offers

• Talk to buyers on someone else’s behalf

…unless you are a licensed real estate broker.

If someone offers to “blast your property to their investor list” or “market it for a fee,” run.

That is illegal and a massive liability for you as the seller.

🔥 Red Flag #2: They Avoid Putting Earnest Money on the Line

A legitimate buyer — investor OR wholesaler — puts real money into the deal.

Scam buyers will:

• Offer $0 EMD

• Offer extremely low EMD

• Say “we don’t need that, we close fast”

• Ask for long due diligence without deposit

• Cancel without consequence

This ties up your home while they shop the deal — often to people they promise “exclusive access” to.

Real buyers commit financially.

🔥 Red Flag #3: Their Contract Is One-Sided, Vague, or Missing Mandatory NC Forms

North Carolina has specific laws and contracts that protect consumers.

Scammers often use:

• Homemade contracts

• Out-of-state investor templates

• Assignable contracts without disclosure

• Terms that violate NC law

• Missing required seller disclosures

If the paperwork looks “off,” you should assume the offer is too.

🔥 Red Flag #4: They Can’t Prove Funds — Ever

A real investor can show:

• Proof of funds

• Bank statements

• Hard money commitments

• Private lender letters

• Past projects

• Business addresses

• Actual LLC information

Fake buyers rely on:

• “My partner has the money”

• “We’ll show funds after signing”

• “We don’t do proof of funds — trust me”

• “We close with crypto” (yes, really)

If they can’t show they can close, they probably can’t.

🔥 Red Flag #5: They Try to Rush You Into Signing Immediately

Scam wholesalers rely on pressure.

They say things like:

• “This offer expires in two hours.”

• “We need this locked up now.”

• “You can’t talk to anyone else.”

• “This is the best offer you’ll get — don’t think too long.”

• “Don’t involve an agent — you’ll lose money.”

Pressure is a tactic used to hide something.

Legitimate buyers want you to be informed, confident, and protected.

🔥 Red Flag #6: They Don’t Want You to Use an Attorney or Agent

This is the biggest red flag of them all.

Scammers DO NOT want professionals involved because:

• Attorneys will catch illegal clauses

• Agents know contract law

• Agents understand value

• Professionals recognize red flags

• Third parties hold them accountable

If someone tells you not to call a professional, call one immediately.

🔥 Red Flag #7: They Don’t Actually Intend to Buy the House — They Intend to Sell the Contract

And here’s the trick:

A legitimate assignment is legal.
A fraudulent or undisclosed assignment is not.

Fake wholesalers frequently:

• Put homes under contract at unrealistic prices

• Fail to find an end buyer

• Ghost sellers

• Try to renegotiate at the last minute

• Cancel on closing day

Meanwhile, YOU — the seller — lose months, money, and opportunities.

🔥 Why These Scams Are Growing in North Carolina

• Social media encourages “get rich quick” wholesaling

• People sell courses teaching ILLEGAL methods

• Buyers are overwhelmed and vulnerable

• Investors are targeting high-growth counties

• Sellers don’t know assignment laws

• Many don’t realize wholesaling requires strict compliance

Knowledge is your best protection.

🔥 How to Protect Yourself from Unlicensed Investors & Fake Wholesalers

Whether you’re selling a home or assigning a contract, here’s how to stay safe:

✔ Verify they have the property under contract

Not marketing it illegally.

✔ Verify earnest money is held by an attorney

Not “a friend,” “a partner,” or “CashApp.”

✔ Require proof of funds

Every real investor has this ready.

✔ Consult a licensed NC real estate agent

They know legal vs. illegal activity.

✔ Have all contracts reviewed by a real estate attorney

Especially if dealing with off-market buyers.

✔ Never allow someone to “find a buyer” on your behalf

That is unlicensed brokerage.

✔ Never sign paperwork you do not understand

Scammers rely on confusion.

🔥 Why Working With a Professional Protects You — Every Time

When you work with a licensed real estate professional:

✔ Your paperwork is legal
✔ Your disclosures are compliant
✔ Your value is protected
✔ Your timeline is secure
✔ Your negotiations are professional
✔ Your sale is backed by accountability
✔ No one can take advantage of you

If a buyer flakes, fails, or deceives?
You have recourse — legally and contractually.

With scammers, you have nothing but regret and lost time.

📲 If You Want to Sell — or Wholesale — Safely in North Carolina, I Can Protect You.

I work with:

• FSBO sellers

• Off-market sellers

• Investors

• Wholesalers

• Distressed property owners

• Inherited property sellers

• Landlords

• Buyers wanting off-market deals

And I understand exactly how to keep you compliant AND protected.

Before you sign ANYTHING:

👉 Book a call: https://calendly.com/jessicajbrealtor
📞 Text or call: (336) 567-5843
📧 Email: jessicajbrealtor@gmail.com
👤 Follow @JessicaJBRealtor for NC real estate protection tips