Complete Noob Questions (Some Houston Specifics)

Complete Noob Questions (Some Houston Specifics)

Member since 2019 · 2 posts · 0 votes

Hey, everyone. 

I've been learning about wholesaling properties and I am very eager to start soon. The training I've had access to through my job has been wonderful. However, I still have some very Noob-ish questions. I'm not a 100% noob - but I am a 50% noob, lol. I understand the process, but there are some areas I'm still not clear on.

1. Where can I find the most profitable area to invest in? Specifically where can I find this info online - Mobility is an issue at times.

2. Are the records in the Harris County Appraisal District website 100% accurate? I'm asking because I just looked up my apartment, and my landlord has been telling us our apt is 1000 sq ft, but in HCAD.org, it's listed as 770 sq ft. Looking at our place now and I'm thinking it's closer to 770...

3. JV deals vs deals that you do 100% on your own (find a motivated seller & a buyer yourself) - Which type of deal do you complete more often? Which is more popular? Obviously you make more money if you do it yourself, but in your experience, is it just more worth it to do a JV deal? I'm really on the fence about this one.

4. Without replying with a wall of text (lol), when you first began wholesaling, what was your best source of

  • a - Finding motivated sellers
  • b - finding cash buyers.

5. Any general advice for someone just starting out?

Those are all of my questions. I should also add that I actually work for a real estate investment website and I've been curious about wholesaling for about a year now. I just never actually tried my hand at it. After seeing the (relatively) easy it is to do some wholesale deals, I am very motivated to do some on my own. I have access to a few motivated sellers, plenty of JV deal opportunities and a good number of cash buyers. However, I do not plan on working here forever, so I need to get my system together.

Thanks in advance for your time!

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  • Flipper · Friendswood, TX · Member since 2017 · 401 posts · 368 votes
    7y

    1. The area close to you, as mobility is an issue at times.

    2. Nothing is 100% 

    3. However you package it to make it look like its got the Highest ARV possible with the most minimal repairs possible in order to create the illusion of "equity".Door to door

    4. whole-selling requires know everything about a deal, and by the time you really know enough to do everything you realize you should just do the deal instead of wholesale it; as dealing with buyers is another entire job in of itself. (its why some many "professional" wholesale companies spend 100% of their marketing to market to newbie investors. Because finding a turd they can package as a dream is easier than finding suckers to buy that twice.

  • Specialist · Branford, CT · Member since 2018 · 222 posts · 121 votes
    7y

    @Chesaré Johnson - the bureaucrats all make mistakes and landlords know to exaggerate. The tax records aren't always up-to-date on the owner mailing address either, since that's not the first place the owner thinks to inform if they move.

    A mail campaign is a good place to find sellers. The list however is key. You should consider mailing to people who aren’t in every other investor’s sites. Absentee Owners have been popular for a long time, and are apparently still somewhat effective (people are still mailing to them) but they are getting multiple offers to buy their home. It's hard to stand out.

    There are some owner-occupied segments with people who share motivating factors for selling their home.

    Seniors with Long-time Ownership: often ready to downsize or transition to assistance.

    Homeowners with Low Financial Stability Scores (FSS): Struggling financially and likely ready to cash in on their asset.

    Both these categories have additional advantages in that they probably don’t haven’t been updated and may have deferred maintenance. They won’t be expecting the same money as their neighbors with the shiny new kitchen and fresh paint. 

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