All Forum Posts by: Trey Watson

We wholesale in Houston and are a licensed brokerage. Single family primarily. Do you have a management company already set up in Houston?

Hey Kris I work for a wholesaler in the area, let me know if I can help

I believe that finding investor buyers is easy if you have a property with the right numbers, especially in Houston. Everything you need is on your phone/computer. The hardest part is finding the deal.

Definitely not a mentor but I work with/we buy from a lot of independent wholesalers and I have frequently needed to walk the wholesaler through the transaction once they have a prospective deal..even if they don't have it under contract yet. 

@Adam Gagne

Hey Adam I work for a local wholesaler here in Houston. What part of Houston are you looking in?

There is no set percentage for a wholesale deal. It all depends on neighborhood and demand. But I will give a hypothetical situation below. 

'IF' you need to sell a deal at 75%, this is a quick, condensed way to look at it:

1. I need to sell to investor at 75% of ARV (Purchase price+rehab) in this particular area.

2. Hypothetical ARV= 200K. So 200 x 75%= 150k. So I need to sell to investor at 150k (Purchase price+rehab)

3. Determine rehab (Hypothetical)= 40k.

4. If purchase price + rehab= 150, to determine investors purchase price, Subtract 40k(rehab) = 110k

5. You now know you must sell to investor for 110k to achieve a 75% deal. 

6. But you need to make money, so subtract what your fee is, and that is your offer price to seller. If I want to make 5k as my fee: 110k Purchase - minus - 5k wholesale fee = 105k offer to seller.

Does this make sense? 

@Tu Cao It depends on your definition of what makes sense. Your definition of an attractive deal might be different than mine or another investor. To me, decent is, you buy the deal for 90k. Put 10-15k of rehab into it. and rent it for 1200-1300. Thats an average deal. Not great but not a bad addition to a portfolio. I know that I can sell a house at those numbers to my investor landlord clients if its in the right neighborhood. 

Don't cut corners with permits thats all I can say. 

RICH club this saturday at 8:30 am.

Also jet lending every 3rd wednesday of the month

Just go to meetup.com and type in 'real estate' as your search and it should show you pretty much every r/e networking even worth going to within 25 miles of Houston. 

There is definitely opportunity in the area. The Houston Chronicle wrote an article a couple of months ago about the east side and how the r/e market and economy over there is going through somewhat of a boom because most of the jobs over there are on the downstream side of oil & gas. 

I know almost nothing about oil and gas but from my understanding downstream refers to the refining process of oil and gas. With the price of crude being so low right now, their refining process is cheaper so they naturally have more cash and flexibility. 

It may not be as simple as that, but from experience I can tell you that every time the company I work for gets a wholesale property over in that area, we have no problem selling it.

Simply put, because most investors stay away from them and my job is to give investors the properties they want. I guess it depends on what part of town the property is in. There are some exceptions in denser areas.