Why Buying Section 8 Rental Property With Cash Is a Great Buy and Hold Strategy

The new wholesale property investor in San Antonio needs to decide if he wants to flip property or buy and hold property. My business is set up primarily to buy and hold property; for the last five years or so, I have especially focused on San Antonio buy and hold property with owner financing.

Owner financing San Antonio properties has the following advantages for the out of state property investor:

  • There are no maintenance problems as with regular buy and hold investing
  • The owner of the under market value property maintains it
  • You simply enjoy the cash flow of the investment property.
  • You help to beautify the community and put a hard working family into a home they own.

Now that is has been my bread and butter way of buying and holding real estate in San Antonio over time with 13% or so returns.

However, there are times where you may want to do buy and hold rental property in San Antonio TX. Some of the most common reasons that we see with our out of state property investors is:

  • They have a high income of $200,000 or more and they want to reduce their taxable income.
  • With rental property they are able to enjoy depreciation and tax write offs.
  • You cannot do this with owner financed property.

When I decide that I want to buy and hold rental property, one of the things that I often do is section 8 rentals. Now, some San Antonio real estate investors may recoil from Section 8 rentals, but to me, there is hardly anything better in rental properties! Section 8 is managed by the Department of Housing and Urban Development, and can be a good deal for the rental property investor. Here is why:

  • Payments are always on time and very convenient: Rents are received every month on time via direct deposit.
  • Protection from financial hardship: No more worries about your renter losing his job. Most section 8 tenants get a  voucher that covers most or all of their rent.
  • Rent is higher: In my houses, I often will get a section 8 rent for $1200 when I might have only gotten $1100 from a conventional renter.
  • Easy marketing: Section 8 uses GoSection8.com which allows me to post San Antonio rental properties and to review applicants for no cost.
  • Minimal vacancies: There is a large demand for section 8 in SA TX.

Oh, there is one other major advantage of section 8 – attention flippers in San Antonio!

Flipping houses is fine and can be profitable, but what if it does not sell? Then you have a rehabbed property and you have trouble getting your profits.

So rent it section 8! When you rent it out with section 8, after it is occupied for at least 6 months, you can do a cash out refinance on it and pull out as much as 80%! Then you can do more San Antonio rental properties. Not a bad deal, huh?

 

What Is a House Flipper?

If you are new real estate investor in San Antonio or anywhere else, you may be considering doing San Antonio flips to build up your cash to do more real estate deals.

As an expert San Antonio wholesale property investor for 15 years, I’ve done hundreds of rehabs and have flipped many San Antonio properties. But before I go any further, if you are new to this discussion of real estate investing:

What Is a House Flipper?

This is a type of real estate investing where you buy a property (ideally under market value) with the intention of rehabbing it to a certain degree and reselling it for a profit. The profit is gained either from an appreciation of the price due to a booming real estate market, or from the capital improvements you make.

When I flip houses in San Antonio TX, I always make sure of the following for best results:

  • I buy affordable homes from $30,000 to $75,000.
  • I buy them at least 20% under market value.
  • I do $10,000 to $30,000 in rehab, depending upon the neighborhood. It is critical to fix a San Antonio flip property enough to sell it and get maximum ARV but not to overdo it.
  • I am happy to make $8000 to $10,000 per San Antonio flip as of April 2016.

If you are researching about flipping houses you may also want to know what is the 70% rule in real estate? This is a common rule that you hear in real estate flipping. It means that you should pay 70% of the ARV of the property, minus the repairs. That is the most you can afford to pay for that under market value property.

So, if the ARV of the house is $100,000 and needs $30,000 in repairs, the 70% rule states that you should pay a maximum of about $45,000 for that property. If you overpay for the property, your chances of making much money on a flip are much less.

I do not necessarily follow this rule precisely in all cases, but yes I know the maximum I likely can pay and still make my desired profit on a flip – $8000 to $10000.

Below is a nice flip that we did with a pair of local San Antonio investors. This worked out very nicely for them. If you do not overpay for the house and do not overrehab, your profit margins in San Antonio flips can be excellent!

 

8f2df7_ba65e210f1874c13a08cc33d467ee41c.jpg_srz_p_339_226_75_22_0.50_1.20_0.00_jpg_srz
$50,500 purchase price, $25,000 rehab, resold with $18k profit, DOM 130.

This under market value manufactured home is located near Canyon Lake, about 15 miles NE of San Antonio. It is a peaceful and beautiful part of our area. It was a distressed property sale that worked out well for the investor.

Our principal sold this property to a family of rehabbers in San Antonio for $50,500, who then did the $25,000 of rehab themselves:

  • Kitchen: $2100
  • HVAC repair: $300
  • Electric Fixtures: $900
  • Interior repair and paint: $4500
  • Exterior Repair and Paint: $3250
  • Exterior skirt: $800
  • Tree trimming: $500
  • Roof repair: $300
  • Plumbing: $500
  • New Water Heater: $2010
  • Bathroom: $1000
  • New floors: $2200
  • Dumpster: $1000
  • New Appliances: $1550
  • Rotten wood removal: $895
  • Deck repair and stain: $900
  • New mulch: $250
  • New windows: $2000
  • New Mail box: $100

Their total investment cost was $75,555, with a sold price of $99,970.

After commissions and closing, they had a profit of $18,000. Investors complimented us on providing them with a profitable first deal and accurate rehab numbers.

 

 

 

5 Things You Need to Make Money With Me in San Antonio Real Estate Investments

I am an aggressive investor and built myself a large portfolio of buy and hold properties in San Antonio in about five years of nonstop work. I don’t need more houses myself. Now my goal is to build long term San Antonio real estate investing relationships with like-minded, aggressive investors with capital. I want to help YOU build your portfolio.

I talk to hundreds of investors and potential investors each year. What I have learned is that the successful San Antonio real estate investors that I work with long term have several things in common.

Am I right to work with you? Are you right to work with me? Well, read below, and then decide :).

calim

For us to work successfully together you must have:

  • Capital – Pretty important! You need to have at least ~$30,000 to do a San Antonio property flip, or ~$75,000 to do a San Antonio buy and hold. It also helps if you have a solid job and good credit so you can borrow cheap money. But it is not a deal breaker if you don’t have either.
  • Realistic expectations: Current market conditions in San Antonio affordable homes dictate that you can make $10,000 to $12,000 on a flip, and 10-14% per year on a buy and hold. Those are GREAT returns! You can do a ton of damage with those numbers and make fantastic money – do 3, 4, 10, 50 deals per year or whatever your cash situation allows.

Let me be clear: I have made millions in San Antonio real estate investing, and retired before age 30, with those types of returns. If you expect $25,000 flip profits or 20% buy and hold profits on these affordable houses, it will NOT happen in our current real estate market.

San Antonio is a great, low cost market with solid returns. The economy is strong, unemployment low, population growth is booming. Also, this area doesn’t really do crazy boom/bust like oil rich/poor Houston; it’s quite stable.

It IS a hot market right now,  but it won’t go too high or ever go too low. It also is not Austin, which is a great place, but really overpriced right now. I like San Antonio because it is cheap and relatively stable, and cash flow is possible in all economic cycles.

That said, 25k flip and 20% ROI isn’t happening in my San Antonio houses in March 2016. The prices have gone up too much for that.

  • Patience: We work in real estate, not Burger King. You cannot ‘order’ a house to sell in a week. It sells when it sells. Typical DOM is 60-80 days. It can sell faster, but I cannot guarantee that. If you want to sell quick, I recommend buying San Antonio real estate investments north of downtown. That is a very hot area (78201 zip code especially). We also can do a ‘fire sale’ and sell the house at a lower price to get it sold quickly. If you want to get a house producing cash flow fast, I recommend doing a Section 8 rental property; we can rent it out in 30 days in many cases.
  • Courage: Real estate investing in San Antonio and anywhere is not for the meek who cannot handle uncertainty. You WILL make money on these under market value investment properties, but selling a house takes time.
decide
Teddy our mascot encourages you the new investor to run the numbers and make a decision.

On a related note, you need to have the guts to make a decision yay or nay on deals I send you in 24 hours. Decide! Don’t be a wimp. Millions of people say they want to get into San Antonio real estate investing or in other cities. Few ever do because they lack courage. I talk to investors who have been mulling investing in real estate for 10 years! 10 years and never bought a deal! I did FIFTY HOUSES in my first year! Run the numbers and DECIDE.

  • More patience: You also need patience on the rehab. 30-45 days is typical, and it can take longer if difficulties crop up, or if it rains for 10 days. I don’t want investors calling me daily on when the rehab will be done. The answer is always ASAP, but it takes time.
  • Trust: My comps and ARVs are dead on. I have done hundreds of rehabs, and I know how to do these little houses right. I know exactly what I am doing and what houses in my areas resell for. You of course should do your due diligence on the property and you of course can ask me questions about its resale value.

I just ask you to keep in mind that I do 100 houses in these neighborhoods per year, and I have a high degree of expertise when it comes to affordable home values in San Antonio TX.  Just because Zillow says a house was worth $60,000 (pre-rehab) a few months ago does not make it true for today for the same house that has been rehabbed.

Also, note that when you look at wholesale property comps, they may not always tell the whole story. In my neighborhoods, there is a wide spread of homes values: There are junk house fixer uppers worth $30,000, and fixed up, totally rehabbed investment properties or owner occupied properties for $150,000. That can skew the comps and ‘trick’ the layman on the ARV of the investment property in question. I know the neighborhoods after 15 years and hundreds of deals, so I’m very confident of my stated ARVs.

A related note on trust: I’m not here to sell you 1 house. Read my mission statement. I’m here to sell you 10, 20, 100 houses. Would I really BS you on the ARV on a house? Heck no. You will be a one and done investor. I have no interest in that. I want long term investors here to fulfill my Mission. And it’s a lot tougher to do 50 single deals with 50 different investors than 50 with 1 investor!

You can and will make money in San Antonio real estate investing, but the above items are non-negotiable in any out of state investment property investors that work with me.

I have fired investors in the last year who did a deal with me and had unreasonable expectations. I want all potential San Antonio investors to understand each point above before they consider working with me.

So to summarize, to work with me you need:

  • Capital: 30k-75k
  • Realistic expectations: 10-12k flip, 12-14% ROI buy and hold
  • Courage
  • Patience
  • Ability to trust me.

So does it sound like we can work together? If so, please contact me now.

15% ROI Case Study on $25,000 Fixer Upper San Antonio Property

The San Antonio real estate market is hot, but there are still excellent, affordable San Antonio real estate investments available for the smart San Antonio wholesale property investor.

I found the property 1918 Santiago 78207 in an estate sale, and it was sold to a California investor for $25,000:

Entry

As you can see, this under market value property needed some work:

Front

However, it is located in a growing and revitalizing area just a few miles west of downtown. So, my out of state investment property investor bought it and put $25,000 of rehab into it:

  • Updated kitchen: Countertop, sink, fixtures, cabinets: $1200
  • HVAC: Installation of 3 ton A/C: $3800
  • Electric: Upgraded all exterior and interior fixtures, all plugs up to code: $2900
  • Interior finish: Sheet rock, paint, doors, trim, hardware, closets and cabinets: $4400
  • Bathroom: New toilet, vanity, mirror, tile/bath/shower walls: $1500
  • Flooring: Laminate flooring in living room and four bedrooms, tile in kitchen, bath, utility: $3650
  • Exterior finish: Paint, dry rotted wood replacement, re-stucco sides: $3300
  • 40 yard dumpster: $1200
  • Plumbing: Up to code: $2200
  • Microwave and vent: $850

The house sold in March 2016 for the following terms:

  • $74,700 final price
  • $750 per month including taxes and insurance
  • 10% interest
  • 30 year note
  • No pre-payment penalty
  • Total ROI: 15%

After rehab pictures:

photo1 photo2 photo4 photo8 photo9 photo10 photo12

This San Antonio real estate investor is making 15% per year on a $50,000 investment.

 

Hot San Antonio Real Estate Investment Market Continues in 2016

Anyone involved in San Antonio real estate investing or real estate in general knows that San Antonio real estate has been hot for the last few years. As a San Antonio real estate investor myself, I have done very well here for 15 years, and the market in the last two years has been strong.

sa2

There are several factors that make San Antonio real estate investments a good bet for the long term:

  • Strong job growth of 3.5%
  • Low cost of living
  • San Antonio’s relative low reliance on oil revenues
  • Strong population growth
  • Pro-business local government

All of these things make San Antonio a solid, long term bet for under market value real estate investing. I have found that even in downturns, the market in San Antonio never drops too much. I always have been able to buy San Antonio real estate investments that produce cash flow.

As for 2016, the news is almost all bright. The San Antonio Board of Realtors reported in February that the San Antonio area had a 10% year over year increase in total sales, as well as a 4% hike in average prices.

Right now, interest rates are low, foreign investors and out of state investment property investors have a strong appetite for real estate investments in Sn Antonio, and job growth is strong. The 3.5% growth rate in jobs in San Antonio bodes well for a continued expansion.

However, on the down side, rising home prices in San Antonio are not always great news. The inventory of available homes is under six months which is quite low considering the growth in population. This could eventually cause a price spike that could lead to a slow down in growth.

That is why I have long believed that as a San Antonio real estate investor, investing in under market value affordable homes is such a smart move. There always is strong demand here for quality homes under $130,000. Usually, the San Antonio real estate investors who get in trouble are investing in more expensive properties above $200,000. Those are the houses that usually decline in value in a downturn and leave flippers in trouble.

I, on the other hand, always buy houses 30% under market value in the $30-75k range, which is very safe even in a downturn.

Given the hot state of San Antonio real estate, now is a good time to flip San Antonio properties, as long as you have realistic expectations of your return. The below property will make you at least a $10,000 return in 60 days.

thumb_IMG_4878_1024

    • Address: 1723 W Ashby Pl  San Antonio, TX 78201.
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $139,000.00
    • Cash Price: $65,900 firm.
    • Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
    • Alternate Exit Strategy: Flip with $35k in repairs. $10,000-15,000 profit depending if you are all cash or use hard money lender. Rehab completed in 45 days or less.

Should I Flip This Wholesale Property or Buy and Hold It?

I currently own in cash several dozen buy and hold San Antonio investment properties. While I do believe that long term buy and hold investing with owner financing or renting is the best way to build real estate cash flow, there also is a place for flipping properties.

When I first began in San Antonio wholesale property in 2001-2, I only had about $70,000 cash. That was enough to buy a couple of under market value San Antonio properties. After that I didn’t have any more capital.

So what I did next was place an ad in the local San Antonio newspaper and I found an under market value property investor who loaned me $2 million over the next two years. Our strategy was to fix and flip, and we split the profits on each deal 50/50.

But Should You Do a San Antonio Flip Property or Buy and Hold?

I believe there is room in San Antonio real estate investing to do both. Below is one of my wholesale properties that will work well as a flip or a buy and hold:

thumb_IMG_4878_1024

    • Address: 1723 W Ashby Pl  San Antonio, TX 78201,
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $129,000.00
    • Cash Price: $69,900 firm.
    • Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
    • Alternate Exit Strategy: Flip with $35k in repairs for a ~$25,000 profit. Rehab completed in 45 days or less.

If you buy and hold this San Antonio turnkey property, you will make 13% ROI per year on a total cash outlay of $105,000. You also could buy this property with 20% conventional finance, and pay a mortgage of approximately $500-600 per month. Positive cash flow would be $950 to $1000 if you buy cash, and about $500 per month with the mortgage.  Getting financing with a property such as this in San Antonio is pretty easy if you have decent credit and assets.

OR, you could flip this house for a $20-25k profit. Your profit margin will depend upon if you use hard money to do the project. I prefer doing my flips in all cash as you will save $3-4k in fees and interest payments.

It can take longer to resell the flip retail than it can take to owner finance it or rent it with a buy and hold investment. So that is something to remember.

Of course, some houses work better as buy and hold investments and some are better as flips. It depends on the size of the home, location, number of bedrooms and more when you buy as a San Antonio real estate investor.

Overall, the strategy I tell most investors with limited capital is to do 3-4 flips, and then take the capital and do a buy and hold investment with owner financing. That way you are combining the best of both worlds with your out of state investment property investing.

 

SOLD – 2006 N. Sabinas, San Antonio TX 78207

20151215_145751

  • Address: 2006 N. Sabinas, San Antonio TX 78207
  • Year Built: 1918
  • Description: Out of state investment property investors, this San Antonio turnkey property is a gorgeous, updated home in super hot area and location west of downtown, 3 bedroom, 1 bath, 1,000 sq feet. Perfect first home recently rehabbed with updated kitchen, HVAC, paint in and out, flooring and bath, updated plumbing and electrical.
  • Exit Strategy: Owner finance or rent for $1195 per month. We will rent or sell property for you.
  • Price: $119,900, cash investors welcome. Also can be financed with 20% down, lenders available – Gary F. Curran, President, Curran Mortgage Inc. 877-522-4780 Direct.
  • For Showing; Contact Joe at 210 816 4280 or contact us. Spanish available.

24_1140813_12_1443498839_636x435 24_1140813_9_1443498839_636x435 24_1140813_10_1443498839_636x435 24_1140813_2_1443498838_636x435

SOLD – 1022 McIlvaine, San Antonio TX 78201

 

m_P_1457494520381_thumb_IMG_5087_1024

  • Address: 1022 McIlvaine, San Antonio TX 78201
  • Year Built: 1918
  • Description: Out of state investment property investors, this is a gorgeous, updated San Antonio turnkey property home in super hot area and location west of downtown, 3 bedroom, 1 bath, 1,000 sq feet. Has been rehabbed to include paint in and out,will install exterior unit A/C before inspection, new flooring, new kitchen and bath tile, new blinds, updated bath and kitchen fixtures, new kitchen cabinets, granite and appliances, must see to believe!
  • Price: $139,900 cash – investors welcome. Also can be financed 20% down. Lenders available – Gary F. Curran, President, Curran Mortgage Inc. 877-522-4780 Direct.
  • Exit Strategy: Owner finance or rent for $1395 per month. We will rent or sell property for you.
  • For Showing; Contact Joe at 210 816 4280 or contact us. Spanish available.

m_P_1457494529380_thumb_IMG_5090_1024 m_P_1457494532358_thumb_IMG_5091_1024 m_P_1457494546845_thumb_IMG_5096_1024 m_P_1457494554716_thumb_IMG_5097_1024 m_P_1457494559938_thumb_IMG_5099_1024 m_P_1457494573032_thumb_IMG_5102_1024 m_P_1457494610217_thumb_IMG_5115_1024 m_P_1457494615069_thumb_IMG_5118_1024 m_P_1457494621559_thumb_IMG_5119_1024 m_P_1457494628275_thumb_IMG_5122_1024 m_P_1457494631860_thumb_IMG_5123_1024

 

How I Earn Money in Real Estate Investing While Others Fail

I have been a San Antonio property wholesaler and investor for 15 years. No matter if the market is up or down, I always make money. In all those years, many investors have come and gone, and yet I am still making money as I always do.

What makes some investors succeed and others fail? Lots of things, but in my experience, I often succeed in investing in under market value San Antonio properties where others fail for a few big reasons:

#1 I Never Get Greedy

I cannot tell you how many times I have had this exact conversation with an ‘investor’:

Me – ‘Hi Mr. Investor! I have this $50,000 San Antonio wholesale property for sale. You should buy it, I’ll do $10,000 in rehab and then resell it for you with owner financing. You’ll make $650 per month and earn 12% per year. A great buy and hold.’

Investor – ‘12%? That sucks! I want 20%!’

Me – ‘Enjoy Detroit, ROI shopper. Bye.’

The purpose of this illustration is to point out that human greed prevents many investors from making money. Many investors always want to make a grand slam on 1 deal. They aren’t happy with with $650 per month on a buy and hold in strong economic market such as San Antonio. No, they want to make 20% however they can….even if it means buying in a really bad area. They want to make more on a single deal than is realistic.

Working in San Antonio in under market value properties offers many great advantages: It’s a booming market, population is growing, revitalization all over town, low unemployment, business friendly, and cheap real estate.

On the down side, because properties are less expensive, you are not going to make $500,000 on a deal like you will in San Francisco. But the ENTRY COSTS for San Antonio are so much cheaper! Take full advantage of that and do lots of small deals and make a bundle!

The way that I make up for that is by never getting greedy. I never turn up my nose at making $5000 or $8000  on a deal, or $650 a month on a buy and hold.

I do hundreds of small transactions per year, and that is how I managed to build $40k per month in real estate cash flow.

Don’t get greedy, investors. It will cost you.

#2 I Don’t Live in Yesterday’s Real Estate Market

Here’s another real life conversation I have had with many investors:

Me: ‘Hi Mr. Investor! This house here is $55,000 and you will make $19,000 on the flip.’

Investor: ‘$55,000!?! It was $44,000 18 months ago! What a rip off!’

Me: ‘See ya.’

Real estate markets change. Distressed properties in San Antonio are more expensive than three years ago. Many investors will look at a property that costs $55,000, one that they could make 13% on per year, and complain that the house was $40,000  in 2013. So what? Markets change! The property is still dirt cheap and you will still make a good return.

In this situation, here is what happens: I have the wholesale San Antonio property under contract. The investor passes on it. So, I buy it cash, I rehab it, and I owner finance it and make all the money. 🙂

Below is a great San Antonio wholesale property deal that if someone does not buy this month, I’ll buy it myself and I will make all the money.

IMG_0022

    • Address: 820 South San Manuel St., San Antonio TX
    • Year Built: 1950
    • Description: Under market value investment property, three bedroom, one bath that has 928 square feet. Beautiful home with TWO exterior storage units – this is a MAJOR selling point for the end buyer; most buyers are blue collar contractors, and they need their tools to be completely secure.
    • Max After Repair Value: $89,000.
    • Cash Price: $59,000.
    • Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $900 per month, $5000 down, 30 year note, 10% interest. This San Antonio investment property offers passive cash flow with no maintenance.
    • Alternative Exit Strategy: $10,000 in repairs and flip/resell retail – maximum ARV is $89,000. Profit $15,000-$20,000.
    • Notes: We recommend that you owner finance this out of state investment property because you will have no maintenance expenses. ROI will be ~13.7%.

In short, don’t get greedy and don’t live in yesterday’s real estate market, out of state investment property investors!

How I Have Succeeded As I Property Wholesaler In San Antonio

I have been wholesaling and investing in under market value properties in San Antonio since 2001. I have been very successful because I have avoided some of the most common mistakes that many San Antonio property wholesalers make:

  1. Having no emergency cash: I have been successful enough with San Antonio investment properties that I have plenty of cash when I need it. The problem that some beginning wholesalers have is that they don’t have much money. It’s nice to be able to wholesale properties because you don’t always need to have a lot of capital to make money. However, if you do not get the house sold, you have to buy the house. In my case, I am able to buy the house myself if it does not sell, and then I usually mark it up and make at least $5000 when I sell it eventually.
  2. Not having a good buyer’s list: Many wholesalers in San Antonio real estate investing struggle to develop a good buyer’s list because it’s hard to find cash buyers. It takes a lot of work and networking. You should never wait until the property is under contract until you find cash buyers. Finding cash buyers is an ongoing process that you should always be doing. I am always looking for cash buyers everywhere I go, and I also market heavily on Craigslist and through my website for cash buyers. I have found many good out of state investment property investors this way.
  3. Remember the needs of the buyers. It is easy to get too focused on your assignment fee as a San Antonio real estate investor. If the price of the house is too high, the end buyer may feel there is no money to be made. I am very good at negotiating a low price and getting the rehab numbers very close to reality. I also can recommend one of my excellent, inexpensive crews to rehab the San Antonio wholesale property to make sure that the investor is happy with his profit.
  4. Check the house carefully. Either pay to have it inspected or be really good at inspecting houses yourself. If you end up putting a house under contract with very expensive, unknown problems, you could end up losing your rear.
  5. Paying too high a price: Buying and selling under market value properties is fun and it is easy to lose track of the bottom line. If you pay too much money, you will never be able to turn a profit.
  6. Crunch numbers: Before you buy or put a wholesale property under contract, you have to know that it is worth it. I am now a real estate agent so I am able to run my own comps and determine my ARV. So, you figure 70% of the ARV, minus your profit, and that is the highest price you can pay. Do not pay more than that or you will lose money.
  7. Bad pricing: If you do not get any offers on your property after a month, you may have priced it too high.

By avoiding those common problems with San Antonio wholesale property, I have been very successful in my investing career.