I am a newbie, I was just wondering if there were any Texas investors that are looking for wholesale property around the Taylor County area, or Abilene, or if anyone has any suggestion for finding investors, please share. I cannot seem to find a REI club close to me besides Dallas, and that is about 2-3 hrs away. Just trying to get a buyers list started. Thanx
I’m in San Antonio, so I’m no where near you. I would try few things:
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Pickup the Sunday newspaper and call all the “We buy houses” ads and see if they are interested in wholesaling. Most of them would be wholesalers but you may find some investors who may need properties.
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Open the Yellow Pages under “Real” and see if you find any “We Buy Houses” ads. If you do, call them and find out if they are interested.
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Go to CraigsList.com and place a free ad under “Real Estate Selling” and “Real Estate Services” sections not Buying section. State that you are a wholesaler…etc.
If you find someone, find out what exactly are they looking for and the formula they use so that you can find something within their price range and still make finders fee.
Best of luck 
thank you! much appreciated!
Hey newbie, I’m a newbie too. Still looking for a good investment in the same area you are speaking of, (mainly Austin) and can’t find a prop yet with good numbers, i.e. price/rent ratio. So, I’m with ya!
m
How are you looking for these properties? there is an investment group in austin btw… Also, there will be a wholesaling class/course in San Antonio end of this month if you don’t mind the drive. I believe it is $399 for both days (9am-5pm)
Mostly ads, FSBO. I know a Realtor and a Banker really well that are going to get me connected with Foreclosures and Pre-Foreclosures soon. I wish i had a mentor, but i go to college in South Carolina and go back to Texas for the summer, so i’m just getting back from school. I learned about RE in South Carolina and now i’m coming back to Texas to practice it. I have had about 2 properties under contract that fell through, but it was really good practice. If anyone can offer me any help in the Texas area, then please reply, thanx.
I’ll be in Houston mid-may and will be looking for deals there. I’m really green in RE too. My only experience was owning overseas for my primary res and it was an AWESOME experience. But let’s keep talking. Texas is ripe for the harvest. My brother has a nice little rental in Austin and it’s kicking off a meager little cash flow, but its making him wealthier by the month. I think we can find some good stuff. What is your strategy?
MK
fadiz,
I am at San Antonio Too! :) What do you think about the SA Market? It's crazy right? Last year I am able acquired 7 properties, now I can't get any. Do you have any good strategy to get more properties? All the media attention about SA, it’s really driving up the market.
Yeah the market in SA is seller’s market and we are getting large number of out of towners investing in San Antonio. Some are saying we are about to see large number of foreclosures since banks have been holding back because of Catrina and they are about to go after people.
I am waiting to move to my new home mid next month, and once I do, I am going to spend about $1-2k/month advertising and see the type of response I get. We’ll see
Also, keep in mind that over the next couple of years, properties in San Antonio will becomes much more affordable because the reduction in the property tax. Many people may decide to keep their houses once the new tax law passes.
Are you a member of sareia?
Austin, Houston, and San Antonio are all becoming pretty competitive. There are some good ways to find motivated sellers, but it takes a lot of work and marketing if you’re going to consistently have leads. Most successful investors have business cards, network to let everyone know that they are investors, drive neighborhoods, send postcards or use bandit signs, etc. They gain a good reputation because they’re consistent and usually solve problems.
You should gather your team, know what you’re looking for, and have everything in place to close before soliciting for business. If you’re into preforeclosures, network with bankruptcy attorneys, financial advisors, and people who will know about the problem before anyone else. For rentals, networking with other landlords, the local apartment association, real estate attorneys, other investors, etc. is useful. They’ll often know of someone who is looking to sell their rental property or how to find them.
Texas is poised to be a seller’s market across the board. Even El Paso’s downtown is going to be revitalized in upcoming years. With the competition from out of town investors, you need to set yourself apart and create a plan. The Millionaire Investor and similar books are good resources.
fadiz,
No , I am not a member of sareia. But I am thinking checking it out next month’s meeting. Do you think it’s benifcial to joint the sareia?
I’ve been a member for couple of months now and I do like it. We meet twice a month where we would have one national/outside speaker and one local speaker but the main benefit is the networking. I am also thinking of joining the Alamo Investors as well just for the networking.
I’m thinking of buying a house in San Ant. I already have a prospective renter and all. What do you guys think of the idea of offering cash to a buyer for 20% of the advertised value? I wouldn’t borrow for this purchase. Also, is it wrong to go directly to the owner and make an offer if they are represented by an agent? How is this done? Or do you have to somehow find buyers BEFORE they list with an agent through some kind of marketing strategy…anyway, totally clueless…need a Mr. Miagi REI.
I can’t even get REOs to sell at 80%. The market in San Anton is hot. I have seen investors wholesaling deals at 80% unless you want to do a rehab job then rent it out.
If you are going after listed properties, then you need to be patient till you find one. If you are not a realtor, you could go to the owner, but the agent will most likely still need his commission if he has an exclusive listing agreement with the seller. If you are licensed in Texas, then you risk losing your license.
So for listed props do you think 90% is more realistic? How can you get a list of sold props in the area to compare?
RH
No I am not saying offer 90%. I was simply stating how difficult it is to find discounted properties that are in good condition or in need for little repair.
You also need to keep in mind that, depending on the area and price range, rent revenue in San Anton may not cover the PITI on the property. Due to the high property taxes, PITI is usually 1% of the loan amount. So, for $130k loan your monthly payments will be around $1300/month. Yet you may discover that the rents in that area for that size house are only $1150/month. That is a negative cash flow without even considering the management charges, vacancies, abd repair costs.
You need to find a good deal or you need to accept negative cashflow and hope for appreciation (which is not recommended).
In some older areas, you could find a house for $70k that is renting for $750-$850/month. You just need to be patient till you find one.
As far as sold comps goes, you need to get them from a realtor. Don’t trust online services since they cannot get the sold comps and they are usually way off.
I’ve been wanting to find positive cash flow properties here in Austin, but no dice. So I’ve been rehabbing and selling. I’ve confined myself to looking in central Austin, because I’m familiar with the neighborhoods and ARV’s of the houses. But is there anyplace around here where you can buy a house and rent it for positive cash flow?
As far as I can tell, the property values are apprectiating so fast the rental income just can’t keep up. Anything that hits the MLS just doesn’t work as a rental. Anybody got any good ideas? I’d love to own some rental, but for now, it’s just rehab and sell.
I’m in San Antonio, and all I did was rentals. I guess I am pretty lucky. All the 11 properties I have, they all have positive cash flow. I brought most of them through MLS. And put 5%-20% down. You need a good realtor on your side. As soon as good REO hit the market. Your realtor will notify you. And you have to quick to make an offer. I purchased 7 properties last year with this method. But this year, no luck. Too many investors come to town. And out bid me every time. 
In San Antonio the best I can do was 75% ARV. But my average was 85% ARV. My rules were the properties must be either 15% under market or $15,000 under market. Anything less than that, it’s not worth my time and effort. Texas experts what are you think of my method? Need improvements?