Real Estate Investing In/around Houston Texas

Wholesaling
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Real Estate Investing In/around Houston Texas

Devon Rollison
Wholesaler · Calgary, Alberta · Member since 2020 · 44 posts · 1 vote

Hey Guys I'm looking to wholesale a place around Houston Texas and would like to know what you guys think the Houston markets cash buyers are buying at? Based on the 70% rule do they pay more then 70% and if so what is the number for Houston markets, for Ex Phoenix Arizona is very high at 80%-82% because it hard to find deals there. I would think 75% would probably be a fair number for Houston and surrounding areas, but I assume not anymore then that, Please all the feedback possible is much appreciated. 

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Brian Alfaro
Multifamily Syndicator · Houston, TX · Member since 2018 · 188 posts · 192 votes
5y

Devon, it depends on if it's a flip or a rental. That's a general rule of thumb - buy & hold investors are usually willing to pay a little more % of the ARV because of their long-term strategy. Again, it depends on the asset and condition/neighborhood it's in.

I would suggest you reach out to an experienced wholesaler in Houston if you've never done one in this market before (or in general). Trying to buy/sell something when you don't understand the market or sub-markets is not a good idea. 

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  • Paul Leavitt
    houston, TX · Member since 2017 · 56 posts · 24 votes
    5y

    Hey @Devon Rollison, I'm looking to buy in Houston, would be interested to know what kind of a deal you've got cookie'. :) 

    I'm new to town, so I can't comment too specifically on how this market is, but there's a lot of property on the MLS, and there's a few possible rehabs on there that my realtor and I are exploring.

    Cheers,

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  • Brian Alfaro
    Multifamily Syndicator · Houston, TX · Member since 2018 · 188 posts · 192 votes
    5y

    Devon, it depends on if it's a flip or a rental. That's a general rule of thumb - buy & hold investors are usually willing to pay a little more % of the ARV because of their long-term strategy. Again, it depends on the asset and condition/neighborhood it's in.

    I would suggest you reach out to an experienced wholesaler in Houston if you've never done one in this market before (or in general). Trying to buy/sell something when you don't understand the market or sub-markets is not a good idea. 

    1Reply
  • Devon Rollison
    OP
    Wholesaler · Calgary, Alberta · Member since 2020 · 44 posts · 1 vote
    5y

    @Wale Lawal Hey Wale, 

    Yes actually, I am living in Canada (Calgary AB), and I am looking to virtual wholesale the way I have learned from people doing it in the states state to state. However my problem is right now, now that I have worked at the acquisitions phase and got 4+ high potential deals that I need to offer and hopefully put under contract ASAP, my problem is that I am on a very short time frame to do my operational and legal due diligence before going through with it. That is my pure focus now i've stopped acquisitions as of today and I am struggling being able to find the best source to give me all the legal and operational information on how It works being that I am in Canada and doing it cross country as I learned how to do it state to state when you live in the US and who knows what differences there are that I need to know. I have messaged 15+ agents, a few lawyers and most recently and best is a agency that takes your legal inquires to the best attorney for your case. So I am waiting on that trying to find out from anywhere and everywhere what is my best way to do my due diligence/make sure that I do everything 100% proper, without spending a ton working extensively with attorney or someone else very expensive, I need the best cost effective option.  

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  • Devon Rollison
    OP
    Wholesaler · Calgary, Alberta · Member since 2020 · 44 posts · 1 vote
    5y

    @Wale Lawal I would definitely entertain that offer once I get this figured out and I am ready to go, especially if I am still not completely confident with doing my first wholesale deal by myself. I would especially like to work with you if you would help me with my problem I stated, hoping to hear back from you Wale.

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  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    5y

    @Devon Rollison Like I mentioned, let's connect and we will go from there.

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  • Shahriar Khan
    Investor · Houston, TX · Member since 2010 · 234 posts · 145 votes
    5y

    @Devon Rollison congrats on getting those leads. Houston is a very active market and we are seeing a bit of slow down given all the expensive jobs in O&G market being shed. At least on the wholesale side, i am seeing softening on the price. Probably it will last till the PPP loan kicks in . 

    Back to your leads, given you are virtual and assuming you will be making some assumptions on repair, once you have an agreement with a seller do the following 

    1. 1. Google "TREC contract one to four houses" and use that form to put the contract in place
    2. 2. Send the contract to title company and start the title process. (American Title Company of Houston is a good place to start) 
    3. 3. Once you have title open and its clean (make sure its clean first before you market to sell) 
    4. 4. Find a buyer here at BP or FB . Buyers will give you feedback on prices right away . 
    5. 5. Once/when you have a buyer , put an ' assignment contract " between you and buyer ( DM me and i will give you one to use) 
    6. 6. You don't need any attorney (title company attorney will review docs for you) and/or any realtor in the process unless they bring you a buyer . 
    7. 7. My requirement for Realtors are that they must do at least 10 Rehabs in past 36 months as an owner and they must own at least 5 rental. If they don't then sorry :)  Everyone is an "investor friendly" till it's their own money 

    Best wishes and keep us posted. 

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  • Devon Rollison
    OP
    Wholesaler · Calgary, Alberta · Member since 2020 · 44 posts · 1 vote
    5y

    @Shahriar Khan Hello Shahriar, 

    I really appreciate your response, your 1-7 steps are nice. Would you be able to look at my other more recent post that i did, I have a problem I am trying to solve and I would REALLY appreciate it if you could give me some feedback please and thank you sir. 

    I will leave the link here https://www.biggerpockets.com/...

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  • Shahriar Khan
    Investor · Houston, TX · Member since 2010 · 234 posts · 145 votes
    5y

    @Devon Rollison there isn't any legal process and/or attorney support needed  based on your personal location as you will be an intermediary only during the sale . You concern doesn't apply in Texas (it may apply in some states where you must have a license to broker a deal). I know at quite a bit of wholesellers in your shoes . Most of them had to close shop cause they were overpaying for contract + under estimating for rehab = contract not being sold. 

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  • Devon Rollison
    OP
    Wholesaler · Calgary, Alberta · Member since 2020 · 44 posts · 1 vote
    5y

    @Shahriar Khan It is not necessarily the process of doing the sale that I need to find out the legality of. It is more so doing my due diligence on knowing for sure that the stuff I learned and am going to implement is completely legal and for me to know what not to do because I have learned from people doing it living in the US and doing it state to state virtually, I don't know what differences I would be faced with doing it in across country. Also anyone that is losing money and has to close shop wholesaling is not doing it right, you simply add contingencies so that you can pull out of the contract with no penalty's if you cant find a buyer in time, usually a 10-15 inspection/due diligence contingency starting the first day the contract is accepted. 

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