New Guy in Dallas/Ft. Worth, TX

[Bill Tyler]

Hello,

I am a relatively new real estate investor living in the Dallas/Fort Worth, TX metroplex. My interest in real estate began around 1991 as I was leaving the Air Force, as I looked at how many single family homes one of my friends and his family owned. It took me YEARS of constantly hounding the family patriarch to teach me HOW they owned over 70 homes with the majority being mortgage free.

Fast forward 20+ years and I've realized that my few transactions need to become MANY more to generate the income and lifestyle that will allow me to have both the time and money to spend with family and friends when I choose – and not just on days off from my employer.

I am currently seeking to network with wholesalers, flippers, investors, contractors, investor friendly title companies in DFW (preferably Tarrant County), and well as hard money lenders for certain deals. I am new to the wholesale aspect of real estate – so a partnership with an experienced wholesaler in this area would be great until I become comfortable completing the deals on my own.

My investment goals are similar to many other real estate investors. I will be seeking wholesale deals and some flips/rehabs to build cash reserves. I would like to build a portfolio of multi-family properties for passive income, preferably starting with some triplexes, quadplexes, or small apartment complexes before purchasing large apartment complexes (50 units or more). I prefer investments in the Dallas/Fort Worth area, but am open to other areas throughout Texas. If you have opportunities outside of Texas – feel free to contact me. If you have contacts that you feel could be mutually beneficial – please introduce us.

Thank you for your time and sharing your knowledge and experience.

Bill Tyler

[Michael Hayworth]

Bill,

Welcome. I'm a contractor and investor, primarily Tarrant County, but I'll look at surrounding counties as well.

Every wholesaler will tell you they're experienced and have great deals. Truth is, this is one of the hottest markets in the country, and it can be hard to find really good deals. I work with a lot of new investors as a contractor, rehabbing their homes, and it's very common that they've overpaid for what someone said was a good deal, but actually wasn't.

I'd encourage you to start small - a $50,000 house with maybe a $10-15K reno budget that you can sell for $75-80. There are still some of those out there, but they go quickly. Point is, don't overreach on your first one. There's a lot of learning involved, and you're going to make mistakes. Better to make them on a small one than to swing for the fences on your first one and find you've actually struck out.

Depending on your regular income and your savings on hand, you may not have to go the hard-money route. There are several porfolio lenders around here that will do straight 15 or 20-year loans in the 6-7% range, and those rates can get better as you gain experience. Most of them will want to lend 75% of purchase price and you pay construction costs, but some of them will even finance construction costs if you have a good financial track record. They'll be more conservative on your first few deals, but it may still be better than hard money loans.