We are constantly asked questions about our wholesale properties, as well as Houston investment property in general. We are to invest as, as well as some answers to the most common questions we get.
Q: Where do you get your property values from?
Here is the best sites to use: A: We use multiple online sources to determine the current market value of properties, as well as driving the area and checking to make sure we have apples-to-apples comparisons.
1) HAR.com is the most valuable resource when you are searching recently info to get reasonably accurate comps, as well as what are other properties are listed for sale in that area to see what else is available It is always good to know what your competition is when it comes to flipping homes, or holding them as rentals.
2) Zillow.com gives a more accurate value in larger urban areas than smaller towns. The values for Houston are usually within 3-5% of a homes value, but can be off by 20% or more in a smaller town like Magnolia.
3) The local county auditor sites:
Harris County: hcad.org
Fort Bend County: fbcad.org
Montgomery County: mcad-tx.org
Galveston County: galvestoncad.org
Q: Where can I get financing for Houston area investment real estate?
If you have buying a property as a if you have the discounted property without financing it, that is always the easiest way to go. Local credit unions are more investor If you are ... If you are ...
Rehabing to resell or rent out: Hard money is the easiest way to go. You will pay a 12-18% interest rate as well as a couple of points, but if you have a good deal on your hands, hard money lenders care more Just be aware that a lot of banks will require the title to be in your name (seasoned) for at least 3-6 months (sometimes as much as 12 months) before they will make a loan to If you hold it as a rental and refinance the property, you will likely need a good credit score, and possibly down payment money if the appraisal on the property comes back too low.
Refabbing to live in yourself: An FHA 203 K loan will likely be your easy option. You will to complete renovations, and then you will be transition to a conventional 15 or 30 year mortgage with little difficulty. http://www.hud.gov/offices/hsg/sfh/203k/203 kabou.cfm "be required to have good credit and a down payment, but you will get get the best interest rate available.
Q: What is wholesale property / wholesaler?
A: wholesale property is a property sold at a deep discount to its fair market value by a wholesaler. A wholesaler is someone who works with motivated sellers, puts their property under contract, and then sells the rights to their contract to the investor / buyer .
Q: What is the wholesale process?
A motivated seller such as a tired landlord calls a wholesaler and offers to sell him / her a house worth $ 100,000 for $ 60,000 that needs $ 5,000 in repairs. The wholesaler inspects the property and verifies the value, then puts the property under contract. The buyer then with the wholesaler, buyer then closes on the original purchase contract for $ 3,000, and has the original contract assigned to them. property, repairs it, and then resells it on the retail market for $ 100,000, or rents it out generating passive income every month.
The seller wins because they are able to be able to sell their property quickly and without have to pay a realtor commission. The wholesaler wins because they are able to make a couple grand by helping put a deal together that $ 60,000 ($ 60k purchase price, $ 5k repairs, $ 3k assignment fee) that is worth $ 100,000.
