Updated about 7 years ago on .
Finding Deals in Austin Texas
Austin, Texas is home for me and has been since I was a child. There are so many things that I love about this city and the surrounding areas. I have seen this area of Texas experience great change and vast growth over the last 20+ years. The buildings downtown are getting taller and the development of land is getting wider. Central Texas is a melting pot of cultures and various demographics. Big companies like Apple have come in and brought thousands of jobs and opportunity. People are flocking from other areas of the country to this oasis we call home. The opportunity for investing in real estate has historically been good. Recently, Austin has become an extremely difficult market to operate in as an real estate investor. With the growth of everything in this area, values of real estate have skyrocketed. The "easy money" has been made and I don’t expect that to continue at the same rate.
Investing in a good market can make anyone look like a pro investor. We've just started a new year here in 2019 and there is a general consensus that the overall market can’t continue to grow. The talk of a downturn is on the horizon. I believe that a successful investor will be the one that understands how quickly market conditions can change. Investors will be able to continue finding success if they can put a plan in place in preparation for when the tide turns. There is just as much of an opportunity to make money in a real estate boom as there is in a downturn or recession. Your success depends on the strategy you put in place and if you can successfully execute.
Today it’s very rare for an investor to find a property on the MLS (Multiple Listing Service) that can generate positive cash flow by putting a 20% down. As investors, we're at the point where we need to get creative. At T.R.E. (Teifke Real Estate) we have been able to acquire properties during this time by finding opportunities off-market. An off-market property is one that is not listed with a real estate broker on the MLS. Although "off-market" sounds like it should be a good deal that is not always the case. Plenty of people have overpaid and lost money when acquiring properties that are considered off-market. Finding and benefiting from investment properties in Austin can be done by following these three tips.
- Meet every wholesaler that you can and learn about their business.
The goal is to be viewed as a solid, reliable investor from their perspective. They will continue to send you good deals first if you can close quickly and do what you say. You can find wholesalers on facebook pages like "Investor Underground" or websites like BiggerPockets. Like other areas of real estate, networking is important and you will be able to meet new wholesalers through other investors or wholesalers. - Make offers!
If you want to close deals you need to collect rejections. Real estate isn’t easy and you have to hear the word "no". Collect 100 no’s and there's a really good chance you’ll hear the "yes" you want. A written offer goes a long way so don’t just make verbal offers write up a contract with a letter from your lender or proof of funds included. - Find potential partners and build relationships.
There are a lot of people trying to do the exact same thing that we are...( invest in real estate that produces income and helps us reach financial freedom). Build relationships with other people. You'll discover people that have strengths that you don't possess. You can work together and benefit from each other. You need to build a "team". You need people on standby that are willing to jump in when you have a deal that could benefit from them. Find potential partners through networking or referrals. Always perform due diligence with a background and credit check on a potential partner.
These are just some tips that we have utilized and we know they work. However, everything requires hard work and commitment. Nothing great happens overnight. Stay consistent and plan for at least six months before you really get rolling. As always, we are more than happy to discuss in further detail or help any way that we can. Reach out anytime!
"Patience is a key element of success." -Bill Gates