All Forum Posts by: Trey Watson

To add some perspective, the median sales price of single family homes in Houston has not decreased year over year since the 90's, probably even before that but that's as far back as I can see. 

Also, depending on how long you plan to hold the property, I don't think equity in a duplex is as important as if the home was for 1 family. It's already a tough sale because when you try to sell it, you'll have to sell to an investor or someone willing to convert it to 1 home. In addition, they are often tough to evaluate because there likely won't be many recent sales of other duplex's in the area.  I think more emphasis should be put on cash flow which from what you said, sounds somewhat attractive on this deal.

I can't partner but if you have any single family properties in the Houston area, i'll be happy to run comps on it and give you a ball park estimate of what we might offer. If the ball park offer is within range of what you are looking for, I'll go physically inspect the property and give you a formal offer. This applies to most single family homes, but not all. I stay away from anything on busy roads or next to commercial. 

@Darwin Molina Biggerpockets is probably the best free place to learn about wholesaling. Even if you pay for subscription, it will more than payoff after 1 deal. 

The best thing I can say about wholesaling is it is numbers game. Find a marketing method, work to perfect it and stay consistent with it. Letters, signs, reach out to r/e agents, other wholesalers, find something or a couple of things that interest you and stick with them.  

1545 is great! So there is a tenant already renting it you mean? 

From looking at the numbers, I guess the reason why your ROI is so low is because your down payment is so high- 53000 is over 1/3rd of the total value.

Another reason is, I think 153,000 is the maximum anyone could pay for that size house (1458sqft), but it would need to be in very good condition. So if you had gotten it a bit cheaper, I think it would have made enough difference to make this an average - above average investment. Right now as it stands however, I think you could do better. Just my opinion. 

To be clear, the lender's numbers/interest rate sound great, but the property numbers do not. 

@Account Closed I'm inclined to say those numbers are not very good compared to other properties available in the Houston market. Your cash on cash should be around 10-11%.

You said you bought it at 153,000? Ideally for a house that price you'd want the rent to be at least 1500-1600 or 1% of the value (You can get better in Houston). This property you bought is in the Copperfield subdivision, I know the area and in my opinion as an agent, could rent for 1400 maximum. I know I could not sell that property with those numbers to one of my investor clients.

You, being in Switzerland and not knowing the area, makes it very difficult to make an educated decision on buying a property. Did you have someone helping you?

@Jay Orlauski Where are you buying where you can make 20%?

Im actually seeing more landlords than fix and flip investors. A lot of my clients who were flipping a year or 2 ago, are now looking for rentals. Flippers are still out there though, they are just pickier because of the uncertainty in the market. 

As far as wholesalers go, I think it will continue to grow and become popular because of the low cost of entry- its often cheaper than buying a house and fixing it up on your own. I think as the industry grows, it will become harder and harder to be an independent wholesaler and eventually it will be so big that regulation will come into play, and then everything changes from there...likely most of the big names will be the only ones still standing...

Who really knows though?

@Erick Burgos I hope it goes well, they have a strong team out there. 

@Bryan Hancock Fortunately or unfortunately, our primary focus is not new development. We spend most of our time buying single family properties in need of rehab. 

While we do welcome new investors, a very large portion of our business is done with repeat and experienced investors. 

One of the great things about New Western is that we don't just throw random email addresses on a list and blast out properties. The 'interview' you mentioned (I call it a meeting) is designed to disclose everything about our process/costs to you so that there are no problems/questions down the road. Yes, we also want to find out who you are and what your intentions are. Every agent does it their own way, but I often ask for a proof of funds at the meeting. This weeds out the people who will waste our time. Once they provide this, I put them on my list. 

Real estate agents do this when taking on a new buyer, so what makes us any different? 

@Erick Burgos Nice! So you are meeting with an agent in Austin or California?