Houston Wholesale - Never Done A Deal This Way & Have Questions

[Ryan Collins]

Hi All, 

I'm not new to the concept of REI or buying homes but in terms of deals I guess you could say I'm still a rookie. I'm juggling this while closing on my FIRST investment property in my hometown of Cleveland, OH. I'm finally taking action which feels great! The problem is I've never done a wholesale and there are so many conflicting opinions on here about the legality of being a wholesaler, etc. I have a good grasp on ideally how it would work with me inserting myself as the middle man between distressed seller and cash buyer. However, I'm looking for a basis on if wholesaling is allowed in the state of TX, any advice you can offer and any resources for contracts geared toward this I can review beforehand.

I work as an independent contractor providing moving services on the side from REI & my full time gig. And while doing so this past weekend I bumped into some flippers with a beautiful partially finished project they are preparing to abandon because it is being foreclosed on by their hard money lender. The semi-funny thing is they actually took this project from someone else partially finished.

I have not worked out the specifics on what the mortgage balance on the home is, how much they have totally invested and what the foreclosure date is yet BUT once I do talk with them further and if the numbers work out I would seriously like to see if they will allow me to try and wholesale the property before it gets taken by the lender. The property is in a great neighborhood of Houston and the ARV is between 1-1.3M (it was actually on the MLS for around $1.4M at one point in time). I don't know what they purchased it at or how the deal was constructed but the sales information I was able to pick up shows the home was originally purchased for $143K. So to me regardless of how many nice finishes they put into the rehab there should still be plenty of meat on the bone for this one for everyone to walk away happy!