I am new to the game (See intro thread in newbie section) and wanting to buy, rehab and sell investment properties in and around San Antonio, TX. I would like to get any and all ideas and advice as possible before I make my first purchase (Oct 1 maybe). So I will give my business plan with all the knowledge I have learned just from the internet.
I want to have a team in place (MHL, Realtor, GC, etc.) to help choose right properties.
I plan to buy wholesale, if the numbers match (no more than 70% ARV including rehab est). I will be using HML to purchase. I am not sure where the wholesaler is paid. At my closing of the purchase of property? My first flip will probably stay in the $100K ARV range.
Once owned, use the GC to make repairs ASAP then have realtor list for sale.
Whats the best plan of action if I am done with rehab yet still on the market nearing the end of HML contract of lets say 6 months?
I plan to use comps of sold and listed to get my pricing right and price reasonably to get offers fast. I know I am limiting myself by not offering owner finance or rental.
I just want to buy fix and sale.
Any though processes I need to change? Any tips to include/exclude? I am a full time home health PT with great flexible hours, but hope to be able to do REI full time soon.
Very excited but VERY nervous! This is all I think about right now… LOL
San Antonio is a good place for this type of house. You can still find houses for sale in the $50k range that will sell once fiixed up for around $100k.
The wholesaler fee needs to be added in to the purchase price just like the rehab costs and all other fees. You pay him at the closing.
Always buy the house so that after all costs are accounted for and the house is on the market you can sell it including your profit immediately. If it does not have a contract and is sold in a month you didn’t do it right. That means that the rehab needs to be very good and you need to be able to sell it to a natural buyer for 20% less than all the other perfect houses in the market area. Not the foreclosures and project houses, I mean the ready to walk in perfect houses.
If it doesn’t sell in a month drop the price and sell it in a month. If your money is tied up in a house you are dead in the water. Get you money back out, figure out what was wrong with that deal adjust and do it again. In any event if you are still in hard money after 6 months they will extend the loan.
Listing comps mean nothing. The only reason people use listing comps is that they are easy to find. Only use sold comps that is where the market is and it separates the professionals from the soon to be broke wanabes. The realtor will deal with the listing prices and he is also the person to get the sold comps from.
The wholesaler you will use is not your friend. Most wholesalers are not long term wholesalers that sell dozens of houses every month. They are people with no cash and no credit that read a book or took a course and are trying to make a few bucks to pay their car note. That does not mean that they don’t have deals but it means they may not understand the total deal or have tools to properly evaluate that deal. They certainly don’t have your best interest at heart. You need access to sold comps and do your own evaluation of the house. You need to figure out everything from fix up costs to a realistic price that it will eventually sell for and how long it will be on the market at each price point. Get those tools in place.
Thank you Bluemoon!! I really appreciate the help!
Yes i will not trust any numbers from wholesaler without realtor and GC seeing property!
Not sure if I wanna wait much longer! i am ready!!!