Canyon Lake, TX · Member since 2014 · 18 posts · 1 vote
I troll the mls, hud etc everyday. Have several realtors doing the same. Have not found any good deals within the past month. There are several wholesale investment groups that sell homes in San Antonio, but they offer no option period in their contracts.
Any advice on finding deals? I am pre-approved with hard money and conventional exit. Have to be able to buy and rehab with 70% ARV. This is for buy/rehab/rent.
Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
11y
Almost all wholesalers do not allow an option period. I have seen some do it for serious buyers who put down $500 - $1000 for 2 to 3 days of option. Also the days of 70% deals in San Antonio are over. I am not saying you won't get lucky and find one, but realistically most of the deals you are going to see will be at 74% - 80% (ARV - repairs).
If you're looking to flip houses, in order to get the margins you want, you'd need to buy at higher acquisition price and higher ARV. This will give you the spread you want even though you have to buy over 70%. If you're looking to hold the properties as rentals, there are plenty of higher percentage good cash flow deals around.
Either way, don't get hung up on the 70% rule. There are deals to be had an money to be made at higher percentages.
Investor · San Antonio, TX · Member since 2012 · 596 posts · 587 votes
11y
Almost all wholesalers do not allow an option period. I have seen some do it for serious buyers who put down $500 - $1000 for 2 to 3 days of option. Also the days of 70% deals in San Antonio are over. I am not saying you won't get lucky and find one, but realistically most of the deals you are going to see will be at 74% - 80% (ARV - repairs).
If you're looking to flip houses, in order to get the margins you want, you'd need to buy at higher acquisition price and higher ARV. This will give you the spread you want even though you have to buy over 70%. If you're looking to hold the properties as rentals, there are plenty of higher percentage good cash flow deals around.
Either way, don't get hung up on the 70% rule. There are deals to be had an money to be made at higher percentages.