Is investing in under market value distressed homes in San Antonio, TX right for you? Make a decision after you review our full Investment Prospectus or Manual below.
This document tells you exactly who we are, what we do, how we do it, and proof of our success.
You can read the entire prospectus on this page, or download it as a PDF:
Investor Prospectus – TexasCashFlow.com V 2.05
Also, please view our Investor Guidelines, or “I Just Bought a House. Now What?!”
Once you are finished with your due diligence, please:
Thank you for your interest in our under market value properties, which often make good out of state investment property.
TexasCashFlow.com Investment Prospectus – Affordable Home Investing – San Antonio TX
Address: 604 West Hollywood Ave., San Antonio TX 78212
Before: $51,000 Purchase Price
After – 12% ROI, $125,000 Market Value
I. Strategy – Invest in Below Market Value Affordable Homes in San Antonio, TX USA
TexasCashFlow.com is a Texas real estate investment company that buys, sells, rehabs and markets affordable homes in San Antonio TX. These are positive real estate cash flow property investments, and are excellent San Antonio investment properties.
Highlights:
- Strategy is long term buy and hold of affordable homes 20-30% under market value ($40,000-$80,000 wholesale), with owner financing and no maintenance expenses. Superior cash flow.
- The under market value property investor owner finances the property to a qualified buyer we find for them – 30 year term, 10% interest, full amortization, no pre-payment penalty.
- Typical annual ROI will be ~10%. with no additional maintenance expenses.
- We prioritize positive real estate cash flow over property appreciation in distressed houses. Unlike Seattle investment property and San Francisco investment property, real estate cash flow is our goal.
- Our neighborhoods and end buyers are mostly blue collar, Hispanic families who work hard and earn $3000-$6000 per month. They are family oriented and have a strong work ethic.
- Most live their whole lives in these neighborhoods and have strong family ties there.
- These affordable houses are strong performers in real estate downturns (see page 3 for more details).
- Active in San Antonio market since 2001, nearly 1000 transactions completed and more than 300 rehabs. We have dozens of cash investors around the US and the world (references available for serious investors with POF).
We Understand the San Antonio TX Real Estate Market
Since 2001, we have developed a deep grasp of the metro San Antonio area. The affordable homes that we transform are well known for their value and investor return.
These affordable, under market value distressed homes with positive cash flow are available to us under market value for several reasons; the most common source is estate sales. .
San Antonio TX USA — An Excellent, Long Term, Stable Growth Market
San Antonio TX is a fast-growing, booming city, recently cited by Forbes magazine as the fastest-growing city in the US for millennials (ages 20-29). The Alamo City is blessed with a diverse industrial base, hard working immigrant population, low real estate costs, no state income tax, good weather, and a generally pro-business regulatory environment. It also was ranked #3 by Forbes in 2013 in fastest-growing tech spots in the US.
Many out of state investment property investors invest with us, especially investors who have bought Seattle investment property and San Francisco investment property in the past.
About the 2007-10 Real Estate Downturn
While the most recent real estate downturn affected San Antonio as it did most areas, the impact was less pronounced here. In fact, the Brookings Institution ranked San Antonio in 2009 as the top economic performer in the US after the recession. This confirms our experience as investors here. The city’s real estate prices tend to be stable and less volatile than many other metro areas of the USA.
We noticed that the primary negative effect of the recession in San Antonio was in the higher end, consumer retail real estate market, particularly homes from $200,000+. Buying wholesale, under market value – what we advocate – offers protection in a downturn.
It is true that during the height of the downturn, RETAIL buyers were harder to find for a time for our houses, but the owner finance market (our major focus) was unaffected. And, the values of our existing housing portfolio didn’t decline at all. We also found that for a time, we were able to buy some affordable homes for 30% less than before the downturn. This was actually a very profitable time for buying our affordable homes.
Bottom line – our portfolio saw little depreciation in the downturn. And monthly cash flow on owner finance properties was unaffected.
Also, we have at our disposal many competitive hard money lenders that we have work with for more than a decade. Please inquire with us if you need a hard money loan.
III. Our Values
As noted above, we invest in under market value homes in San Antonio TX. The main purpose of this is to provide a superior rate of return for our investors.
However, it is vital to note that we view our affordable housing model as a philanthropic enterprise, as well. Using our owner finance model, we are privileged to offer affordable homes in our area to hard-working, blue collar workers with steady work history and documented income. You can feel satisfied that not only are you earning an excellent ROI – you are contributing to the revitalization of our city and helping a family live the American Dream.
Our company has contributed to this process by rehabbing and reselling hundreds of houses with owner financing to hardworking families. This increases the tax revenues flowing into the city, which in turn is used to build new infrastructure in our neighborhoods. We are thrilled and honored to be a part of this revitalization process.
IV. Our Process
Our real estate investing company handles the entire cash real estate investment process for you with fixer upper properties. All you need to do is to purchase the property, and enjoy the return. We handle all of the details:
- Property acquisition (title is guaranteed to be lien-free and clear at closing)
- Property rehab (you receive a detailed, itemized bid; 30 day or less completion)
- Resale – whether owner finance or retail
- All closings are handled by West & West Attorneys at Law, P. C., 2929 Mossrock, Suite 204, San Antonio, TX 78230.
- Closing documents can be Docusigned by email or delivered by mail.
- We are available to manage your owner finance or rental portfolio. Please inquire.
- Investor is regularly updated weekly on rehab and resale progress (includes photos).
- Houses are marketed on MLS, Craig’s List, word of mouth, and with signs posted in the neighborhoods.
About Rehab
We use a full time construction company, and all contractors are highly experienced, licensed and insured. We handle the entire rehab project in 21-45 days maximum. All required permits and engineering reports are included in your rehab price. Your detailed rehab bid will be sent to you after closing.
Rehab costs rarely exceed the stated budget; however, if something unexpected arises during the project, we will contact you to discuss options.
Most of our properties have ‘foundation’ problems, but the vast majority are minor and can be fixed for $5000 or less. Most are pier and beam foundations and are quite easy to fix.
V. Record and Returns
Over the last 10 years, we have bought and sold approximately 75 houses per year, the vast majority of which have been owner financed by the investor with ROI ~10%. The rest were either flipped for a 20-30% return or rented out for a 10% rate of return. Several of these projects are located later in this prospectus.
We are able to achieve these returns primarily through the following ways in our fixer upper homes with positive cash flow.
- Buying affordable homes for 20-30% under market value. We never purchase houses at market value. This offers you better returns, and safety in a downturn.
- Performing property rehabs at wholesale prices, saving the investor thousands of dollars off of traditional rehab costs.
- The expert knowledge of John Majalca in our neighborhoods – knowing how much rehab to complete. The common error in rehabbing affordable homes is spending too much. We do not.
- Our goal is to complete just enough rehab to resell the house.
- Our end buyers complete the rehab at their expense.
- Please see specific deal returns at the end of this prospectus.
VI. Fees
Our real estate investing company is a large volume wholesaler, and our fees are reasonable. Our only profits are standard real estate commissions and a small management fee on rehabs in our investment properties.
When we sell the investor a property, we earn a standard real estate commission of 3%. The house usually is under contract (we don’t own it), so it has not been marked up to make us a profit on the front end. When we facilitate the sale of the house to an owner finance buyer, we also earn a 3% commission.
Also, our construction company will perform your rehab of $5000-$20,000 done in less than 21 days in most cases. There is a project management fee of 10%.
Closing Costs
Closing costs on these houses are approximately 3-4%% of the wholesale price, and of the final price on the owner finance resale. On the latter, the closing costs normally are paid out of the buyer’s down payment.
Foreclosures
Vacancies are part of the rental property business, as are repairs and damages by tenants. And in owner finance, foreclosures are part of the business (but repairs and damages expenses are not).
Foreclosures are rare but they do happen. In five years, we may get 10-20% of our houses back. Total foreclosure costs are $1000 to $1500. The house is vacated in 60 days or less and resold. You also get $5000 down again. Foreclosures are usually quite profitable for the investor. We have a real estate attorney available to handle this for you if it ever occurs. We will help you to find a new buyer.
Below are completed projects that are now generating positive cash flow for our investors. Wholesale and end buyer prices are supported by sold and rental comps (available upon request). For new, available projects, please visit our new website, www.TexasCashFlow.com, or contact Joseph Pickett (210) 816-4280, jmpickett@gmail.com.
Buy and Hold – 604 West Hollywood, San Antonio TX 78212
This distressed sale property was done in March 2014, and is a two bedroom, one bath affordable home located in a hot area north of downtown San Antonio called Beacon Hill. It is 900 square feet, on .15 of an acre built in 1945. It was an estate sale, and as the original photos show below, it was in rough shape. The house was not rehabbed, and was resold with owner financing to a blue collar worker with two good jobs.
Before Buyer Rehab:
- Wholesale Price: $51,000 cash
- Rehab cost: Zero
- Owner Finance Price: $80,000
Down Payment: $5,000
- DOM: 60
- Monthly Payment: $806
- ROI: 12%
After Buyer Rehab:
Buy and Hold – 1629 Santa Anna St., San Antonio TX 78201
This property investment was completed in spring 2015. It also is located north of downtown in an in demand, revitalizing area, only about 10 easy minutes from downtown. It is a three bedroom, 1.5 bath (the extra half bath is unusual in this price range), 1074 square feet, built in 1946, hot Los Angeles Heights subdivision. The house had $10,000 of rehab completed in three weeks: paint in and out, flooring, minor foundation repair. It was resold with owner financing to a two income family.
- Wholesale Price: $62,000
- Rehab Cost: $10,000
- Owner Finance Price: $89,900
- Down Payment: $5,000
- DOM: 45
- Monthly Payment: $937
- ROI: 10%
Before Rehab:
After Rehab:
Buy and Hold – 1622 Alametos, San Antonio TX 78201
This positive cash flow fixer upper home was completed in September 2015. It is a lovely home centrally located north of downtown, near I-10, with brand new roof and granite counter tops. It was a two bedroom, one bath, which was converted by our team into a three bedroom. It has .14 acres, built in 1947, 966 square feet, Los Angeles Heights subdivision, a hot area. It had $10,000 of rehab completed in three weeks: central heat and air, carpet removed, interior paint, light fixtures, front bedroom leveled, third bedroom conversion. It was sold with owner financing to a teacher with a steady job.
- Wholesale Price: $65,000 cash
- Rehab Cost: $10,000
- Owner Finance Price: $99,900
Down Payment: $5000
- DOM: 7
- Monthly Payment: $1041
- ROI: 11%
Before Rehab:
After Rehab:
Buy and Hold – 3711 Southport Drive, San Antonio TX 78223
This distressed property sale was completed in fall 2014. This three bedroom, one bath affordable home has a one car garage, .15 acres, and was built in 1957. It is located on the south side of San Antonio, which is rapidly growing and being revitalized. Central air was added, inside paint, and kitchen and bath rehabbed. It was owner financed to a working family.
- Wholesale Price: $49,500 cash
- Rehab Cost: $11,000
- Owner Finance Price: $89,900
Down Payment: $5,000
- DOM: 120
- Monthly Payment: $895
- ROI: 10%
Before Rehab:
After Rehab:
Flip – 503 Lovera Blvd., San Antonio TX 78212
This positive cash flow property investment was completed in June 2015. It is a three bedroom, one bath north of downtown in a very in demand area. It was built in 1951 and was completely rehabbed. Rehab included paint in and out, kitchen granite, electric fixtures, new flooring, new deck, bathroom upgrades, old deck removal, concrete stain, new sod and deck stain. It was sold retail.
- Wholesale Price: $72,000 Cash
- Rehab Cost: $18,000
- Retail Price: $125,000
Down Payment: $25,000
- DOM: 120
- Investor Profit: $15,000
Before Rehab:
After Rehab:
Note: The following two projects are our more value-priced deals under $40,000 wholesale. They may not appear to be houses that will sell quickly, given the limited rehab. But these houses do sell and produce good cash flow in 90 days or less.
Houses with affordably payments under $600 such as these are in demand in our areas, regardless of how they may look personally to the investor. The house payment is comparable to area rents. These houses are great opportunities for lower income, blue collar contractors to own a home affordably and repair it themselves.
Buy and Hold – 415 Frio City Rd., San Antonio TX 78207
This distressed sale was completed in October 2015. It is a small two bedroom, one bath west of downtown in a revitalizing area. It has 648 square feet, built 1950, only a few minutes from the San Antonio Riverwalk. This is one of our lower priced homes that had minimal repairs: paint, touched up flooring, cleaned. This is a good example of how we do not over rehab a home. This area is in less demand and has a lower income than areas, say, north of downtown. So less rehab is required. It is a good value investment, and the new owners are delighted with their first home.
- Wholesale Price: $35,000 cash Rehab Cost: $1000 Owner
- Finance Price: $54,000
- Down Payment: $5,000
- DOM: 45
- Monthly Payment: $550
- ROI: 11%
Pictures: Simple Clean Out, Minor Touch Ups Only
Buy and Hold – 1219 Perez, San Antonio TX 78207
This distressed property sale was completed in June 2015. This is a three bedroom, one bath house of 950 square feet located at the end of a quiet street near an elementary school, west of downtown. It is approximately three miles from the Riverwalk and Alamo. This house also is a good example of a lower cost house in a lower cost area but one that is still rising. This house did not require high quality finish work to resell it, such as granite and tile and flooring. Instead, the rehab budget of $10,000 was spent on leveling the foundation, inside and outside paint, painting the floor (rather than adding new flooring), finishing the plumbing and clearing trash.
- Wholesale Price: $30,000 cash
- Rehab Cost: $10,000
- Owner Finance Price: $55,000
- Down Payment: $3000
- DOM: 90
- Monthly Payment: $550
- ROI: 11%
Pictures:
Flip – 650 Canyon Springs Drive, Canyon Lake TX 78133
This investment in property was completed in August 2015. It is a two bed room, one bath manufactured home just a few minutes from Canyon Lake, 1114 square feet and built in 1979. It is about 30 miles north of San Antonio.
The home was purchased by a team of rehabbers in San Antonio. They fixed up the house per our recommendations and flipped it for a very nice profit. They upgraded kitchen, HVAC, painted in and out, upgraded floors and bathroom, added new appliances, repaired deck and added new windows.
- Wholesale Price: $50,000 cash
- Rehab Cost: $25,000
- Resale Price: $99,970
- Total Profit: $18,000
- DOM: 160
Before Rehab:
After Rehab:
For current fixer upper homes and cash investor references, kindly contact Joseph Pickett (210) 816-4280, or use our Contact Us form. www.TexasCashFlow.com.
Remember, these San Antonio investment properties offer real estate cash flow of 10-15% per year without repairs or maintenance, once the rehab is completed. They are an ideal out of state investment property, especially for people used to buying California investment property and other states investment properties that are sold at over market value.
