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15% ROI Case Study on $25,000 Fixer Upper San Antonio Property

The San Antonio real estate market is hot, but there are still excellent, affordable San Antonio real estate investments available for the smart San Antonio wholesale property investor.

I found the property 1918 Santiago 78207 in an estate sale, and it was sold to a California investor for $25,000:

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As you can see, this under market value property needed some work:

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However, it is located in a growing and revitalizing area just a few miles west of downtown. So, my out of state investment property investor bought it and put $25,000 of rehab into it:

  • Updated kitchen: Countertop, sink, fixtures, cabinets: $1200
  • HVAC: Installation of 3 ton A/C: $3800
  • Electric: Upgraded all exterior and interior fixtures, all plugs up to code: $2900
  • Interior finish: Sheet rock, paint, doors, trim, hardware, closets and cabinets: $4400
  • Bathroom: New toilet, vanity, mirror, tile/bath/shower walls: $1500
  • Flooring: Laminate flooring in living room and four bedrooms, tile in kitchen, bath, utility: $3650
  • Exterior finish: Paint, dry rotted wood replacement, re-stucco sides: $3300
  • 40 yard dumpster: $1200
  • Plumbing: Up to code: $2200
  • Microwave and vent: $850

The house sold in March 2016 for the following terms:

  • $74,700 final price
  • $750 per month including taxes and insurance
  • 10% interest
  • 30 year note
  • No pre-payment penalty
  • Total ROI: 15%

After rehab pictures:

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This San Antonio real estate investor is making 15% per year on a $50,000 investment.

 

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Hot San Antonio Real Estate Investment Market Continues in 2016

Anyone involved in San Antonio real estate investing or real estate in general knows that San Antonio real estate has been hot for the last few years. As a San Antonio real estate investor myself, I have done very well here for 15 years, and the market in the last two years has been strong.

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There are several factors that make San Antonio real estate investments a good bet for the long term:

  • Strong job growth of 3.5%
  • Low cost of living
  • San Antonio’s relative low reliance on oil revenues
  • Strong population growth
  • Pro-business local government

All of these things make San Antonio a solid, long term bet for under market value real estate investing. I have found that even in downturns, the market in San Antonio never drops too much. I always have been able to buy San Antonio real estate investments that produce cash flow.

As for 2016, the news is almost all bright. The San Antonio Board of Realtors reported in February that the San Antonio area had a 10% year over year increase in total sales, as well as a 4% hike in average prices.

Right now, interest rates are low, foreign investors and out of state investment property investors have a strong appetite for real estate investments in Sn Antonio, and job growth is strong. The 3.5% growth rate in jobs in San Antonio bodes well for a continued expansion.

However, on the down side, rising home prices in San Antonio are not always great news. The inventory of available homes is under six months which is quite low considering the growth in population. This could eventually cause a price spike that could lead to a slow down in growth.

That is why I have long believed that as a San Antonio real estate investor, investing in under market value affordable homes is such a smart move. There always is strong demand here for quality homes under $130,000. Usually, the San Antonio real estate investors who get in trouble are investing in more expensive properties above $200,000. Those are the houses that usually decline in value in a downturn and leave flippers in trouble.

I, on the other hand, always buy houses 30% under market value in the $30-75k range, which is very safe even in a downturn.

Given the hot state of San Antonio real estate, now is a good time to flip San Antonio properties, as long as you have realistic expectations of your return. The below property will make you at least a $10,000 return in 60 days.

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    • Address: 1723 W Ashby Pl  San Antonio, TX 78201.
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $139,000.00
    • Cash Price: $65,900 firm.
    • Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
    • Alternate Exit Strategy: Flip with $35k in repairs. $10,000-15,000 profit depending if you are all cash or use hard money lender. Rehab completed in 45 days or less.
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How To Build Wealth Through San Antonio Real Estate Investments

If you are a potential out of state property investor and want to build wealth through San Antonio real estate investments, there are a few things that I think might give you some guidance and reassurance:

#1 San Antonio Is a Great Market for Under Market Value Real Estate Investing

This is a pretty unique market:

  • Real estate is still inexpensive, with San Antonio real estate investments in my areas going for $40,000 or $50,000 wholesale.
  • The economy is strong, with annual job growth in the 3-4% range.
  • The local market is not oil dependent, so San Antonio real estate investors do not have to worry about a boom/bust cycle.
  • The population is growing here year after year as is the number of jobs.

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All in all, San Antonio is really good for real estate investors. It is a stable, growing market, and I did very well here in the last downturn.

#2 There Are Still Many Excellent San Antonio Real Estate Investment Deals

Another unique thing about San Antonio for real estate investors is that it is an old city, with a large stock of older homes built in the 1920s to 1940s. I have been investing here for 15 years, and I still drive down streets in my area that I have never been down before.

If you are a new San Antonio real estate investor, you may have trouble finding deals in all the normal places new investors look. One advantage of working with me is that I am at the level where I hire wholesaling companies to work for me and to find potential deals for me. My job is pretty easy when I have people send me San Antonio wholesale property. I just have to inspect the best deals and make offers.

You could spend hours and hours on your own trying to find your own San Antonio wholesale deals, or you could just buy mine.

I also have other real estate investors in San Antonio and agents send me deals because they know who I am, and they also know I close with cash in 10 days.

#3 I Recommend Flipping Properties to Build Capital and Then Buy and Hold

Some people like to flip and some like to buy and hold. My personal portfolio is mostly San Antonio buy and hold properties with owner financing, and a few rentals.

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However, I do believe in this model for people who have limited capital:

  • Buy a $50,000 San Antonio wholesale property either cash or with hard money; do $25,000 or so in rehab, and flip it for a $10,000 to $12,000 profit. You will need to have $20,000 to $30,000 cash to get rolling in this plan.
  • Do 3-4 of those per year, or more if you can.
  • After two years, you could have $100,000 or more. Use that money to buy San Antonio real estate investments to buy and hold – either buy in cash or do 20% down conventional finance.

This is a great, basic blueprint to build wealth in San Antonio real estate investing.

#4 San Antonio Wholesale Property Deals Are Profitable But…

I see many San Antonio real estate investors never do more than a deal a year because they are trying to make too much money on a single deal.

I have made millions of dollars in my San Antonio wholesale property career by doing San Antonio property flips for $5000 or $7000. I never understand why so many real estate investors get greedy and want to make $20,000 or $30,000 on a flip. I do 50 San Antoniio property flips per year and make $7000 each. That’s $350,000! Works for me!

Or, I do San Antonio buy and hold deals for $600 per month. When I do 10 more of those per year, that’s another $70,000 of income. I have no problem with that.

You have to have realistic expectations when you are buying and selling San Antonio investment properties. The prices are low, but you only are going to make so much money on one $60,000 house. Don’t get greedy, and you can do very well.

I have had several out of state property investors walk away from this fantastic San Antonio flip or buy and hold deal. They want to make too much money. You can make $15,000 on this flip in 60 days. Or, 13% per year on a San Antonio buy and hold.

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    • Address: 1723 W Ashby Pl  San Antonio, TX 78201,
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $129,000.00
    • Cash Price: $65,900 firm.
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How I Make Big Profits on San Antonio Buy and Hold Property

Many wholesale property investors in San Antonio and other areas are big into flipping properties for wealth building.

It is true that flipping houses in San Antonio can be profitable, and I sometimes do San Antonio property flips. However, the majority of my wealth building over time as a San Antonio real estate investor has been with San Antonio buy and hold property.

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This buy and hold property makes the investor in San Antonio 13% per year.

Below are simple steps to follow to buy a profitable buy and hold property as a San Antonio real estate investor:

#1 Locate the Right Buy and Hold Property at the Right Price

I always try to buy wholesale properties in San Antonio that produce 12-15% ROI per year, either through renting or owner finance. I also like to buy under market value San Antonio properties on the edges of neighborhoods that have houses worth $300,000 or more. The interesting thing about San Antonio wholesale property is that you can find $60,000 under market value fixer uppers just a few streets away from much more expensive properties. Those are the areas I target.

Here is a good example.

#2 Do the Numbers Make Sense?

Cash flow truly is king in buy and hold investment properties. You need to carefully determine how much you keep every month after you pay all expenses.

Many wholesale property investors buy and hold rental properties, and I have done some of that. However, I like to buy my under market value properties in cash, and then owner finance them.

The advantage to this type of buy and hold property investing is that the buyer of the house maintains it, and I just carry the mortgage on San Antonio real estate investment.

If you are doing buy and hold rental properties with a mortgage, really make sure that you are going to see positive cash flow, after all expenses, vacancies and repairs. If you are just barely paying the mortgage when you are fully rented and you have no major repair expenses, trouble awaits!

#3 Make Money at Closing

The biggest reason many buy and hold investors lose money is that they pay too much for the house. You MUST buy the house under market value to produce cash flow. You want to buy a San Antonio buy and hold property at least 20% under market value.

My investor paid 30% under market value for this house and now makes 16%.

#4 Manage Tenants Right

I buy and hold properties with owner financing, so I don’t have many tenants. But if you do rental properties, you have to very carefully screen tenants. You also can hire a property management company to handle your tenant screening and property repairs.

Of course, many buy and hold investors lose money here…..they pay too much for property management and they have no cash flow. Once again, this is where I recommend as a san antonio real estate investor buying properties in cash and owner financing them.

 

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How to Do Your First San Antonio Wholesale Property Deal

To get started with your first San Antonio wholesale property if you don’t have much cash, you probably should start with a simple fix and flip project.

When you flip an under market value San Antonio property, you will buy it 20-30% under market value, and then do $10-30k in repairs so that you can resell it on the retail market.

Of course, there are many mistakes you can make when you fix and flip a San Antonio property, and you really have to know what you are doing. My advice to a rookie is to not take on a fix and flip project alone, at least for your first deal.

Wherever you are, I recommend that you work with an experienced real estate investor who ideally is also a licensed real estate agent. That investor can help you to find a good under market value investment property and guide you on how much repair to do.

If you are a handy type, perhaps you can do the repairs yourself. If not, your investor partner may be able to do it for you.

In my case, I have several full time work crews helping me with San Antonio flip properties and San Antonio buy and hold properties.

If you are going to do your first property flip project on your own, be sure to read this article I wrote about how to get hosed when you do your first fix and flip.

If you are interested in flipping San Antonio properties to build up cash, I can help you with it if you like.

You will need probably $20,000 cash to get started on your first flip. The rest can be funded through one of my hard money lenders. Cash is always best as it is cheaper, but if you don’t have it, hard money it is!

Expect to make $8000 to $10000 on your first flip. Below is a great first San Antonio flip property:

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    • Address: 820 South San Manuel St., San Antonio TX
    • Year Built: 1950
    • Description: Under market value investment property, three bedroom, one bath that has 928 square feet. Beautiful home with TWO exterior storage units – this is a MAJOR selling point for the end buyer; most buyers are blue collar contractors, and they need their tools to be completely secure.
    • Max After Repair Value: $99,000.
    • Cash Price: $56,500.
    • Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $900 per month, $5000 down, 30 year note, 10% interest. This San Antonio investment property offers passive cash flow with no maintenance.
    • Alternative Exit Strategy: $25,000 in repairs and flip/resell retail – maximum ARV is $99,000. Profit $10,000.
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How to Flip a Wholesale Property in San Antonio and Get Hosed

I mostly buy and hold investment properties in San Antonio TX now, but I still flip houses for out of state property investors. Over the last 15 years, I’ve flipped several hundred houses, and I’ve made my share of mistakes.

Hopefully, you can learn from the mistakes I made years ago and make good returns on your San Antonio flip properties. The biggest thing to avoid is without question to not buy the wrong San Antonio flip property! Avoiding the bad flip deal is hugely important.

And here are some of the mistakes in more detail that will get you hosed in your San Antonio flip project:

#1 Getting Your ARV from Zillow

I run into quite a few rookie investors who think that you can get an accurate after repair value by using Zillow and other websites. Let me be clear: If you are getting your ARV from online research, just take a pile of cash and burn it, because you are going to get hosed on the San Antonio flip deal.

You MUST work with a very experienced real estate agent (who ideally is an investor) who knows the area well and can determine an accurate ARV.

I for example am a San Antonio real estate agent and also an expert San Antonio real estate investor. I know down to the dime what the ARV is on a San Antonio flip property or a San Antonio buy and hold property.

#2 Fudging the Numbers on the 70% Rule

The 70% rule works like this: Take your ARV (which I sure hope is accurate!) and multiply it times .70. So, if the ARV is $100,000, multiply that times  .70. That’s $70,000. Now, subtract your repairs (another area where you really have to know what you’re doing to make a San Antonio property flip work).

Say, the repairs are $20,000. So, you subtract that from $70,000. You now know approximately the maximum amount you can pay for that San Antonio flip property.

Some rookie investors will fudge the numbers here because they fall in love with a deal. Never do that. Be ruthless and disciplined when determining the maximum amount you can pay. Your profits depend on it.

#3 You Buy the San Antonio Flip Property with No Exit Strategy

As I said above, I usually buy and hold San Antonio properties long term now – with owner financing. It is, however, a good idea to have a couple of exit strategies in mind if something goes amiss.

For example, you could rehab the San Antonio wholesale property and not find a buyer for 6 months. It has happened even to me. In that case, you need to go to plan B, which for me is to rent out the property section 8. That’s a good go-to, back up option for San Antonio distressed properties.

#4 Doing a Flip Deal with No Team

How many out of state investment property investors get into real estate investing on the side with no experienced team to rely on? What a disaster. You are almost certain to get hosed in San Antonio real estate investing.

To make a successful San Antonio flip, you need to have the following:

  • An expert real estate agent/investor
  • An experienced rehab crew
  • Hard money lender (working with an experienced investor will be easier because he will have done a lot of deals with many HMLs in the area)
  • Real estate attorney
  • Title company

I have a San Antonio buy and hold and property flip team that I have worked with for 10 years.

#5 Flipping With Your Last $10,000 or $20,000

Sure you can risk it all and hit it big, but you also can get totally hosed. You should not do a San Antonio property flip with money that you absolutely have to have back in 90 days or the world will end.

For your first property flip in San Antonio, you can use a hard money lender to fund a good deal of the deal. You still will need maybe $10,000 or $20,000 of your own money. Make sure you can afford to have that money tied up for a few months! If you can’t, I’d wait to do a flip until you can.

#6 Doing the Rehab on Your Own

I usually maximize my profits on my buy and holds and flips because I know a lot about construction after 15 years. Many rookies lose their butts and get hosed on rehab. Do not do the rehab on your own unless you have YEARS of construction experience in similar projects, and you have the time to devote to the flip project.

#7 Never Doing a Deal

After all this gloom and doom about failing in flipping a house, the worst is really to never do a deal because you are afraid. You just need to do plenty of prep work and studying and networking to prepare to do your flip deal. Study the numbers, learn construction, assemble a good team, and when the time comes, do the deal!

If you are interested in doing a San Antonio property flip and are nervous, I’m happy to work with new investors with capital. I’ll show you exactly how I do it to make a $15,000 or $20,000 return in 60-80 days.

 

 

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Should I Flip This Wholesale Property or Buy and Hold It?

I currently own in cash several dozen buy and hold San Antonio investment properties. While I do believe that long term buy and hold investing with owner financing or renting is the best way to build real estate cash flow, there also is a place for flipping properties.

When I first began in San Antonio wholesale property in 2001-2, I only had about $70,000 cash. That was enough to buy a couple of under market value San Antonio properties. After that I didn’t have any more capital.

So what I did next was place an ad in the local San Antonio newspaper and I found an under market value property investor who loaned me $2 million over the next two years. Our strategy was to fix and flip, and we split the profits on each deal 50/50.

But Should You Do a San Antonio Flip Property or Buy and Hold?

I believe there is room in San Antonio real estate investing to do both. Below is one of my wholesale properties that will work well as a flip or a buy and hold:

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    • Address: 1723 W Ashby Pl  San Antonio, TX 78201,
    • Year Built: 1925
    • Description:  Under market value property, investors dream north of downtown, 3 beds 1 bath, 1000 sqft, built: 1925, lot size: .19 acres, yearly taxes: $1,700.00, estimated yearly insurance: $800.00; estimated repairs: 35K, includes new HVAC, updated kitchen/bath, flooring, paint in/out, exterior skirt, appliances, plumbing/electric up to code, paint out door storage exterior, trash, lawn maintenance.
    • Max After Repair Value: $129,000.00
    • Cash Price: $69,900 firm.
    • Exit Strategy: Owner Finance with 35K repairs: 5-10k down or more, $1,295.00 monthly P/I, 30 year amortization, 10% interest. Or 15K rehab, new HVAC, paint in/out, kitchen/bath repairs, plumbing/electric up to code, then FSBO at 109K, 10% interest, $1,100 monthly PI/TI, 30 year amortization.
    • Alternate Exit Strategy: Flip with $35k in repairs for a ~$25,000 profit. Rehab completed in 45 days or less.

If you buy and hold this San Antonio turnkey property, you will make 13% ROI per year on a total cash outlay of $105,000. You also could buy this property with 20% conventional finance, and pay a mortgage of approximately $500-600 per month. Positive cash flow would be $950 to $1000 if you buy cash, and about $500 per month with the mortgage.  Getting financing with a property such as this in San Antonio is pretty easy if you have decent credit and assets.

OR, you could flip this house for a $20-25k profit. Your profit margin will depend upon if you use hard money to do the project. I prefer doing my flips in all cash as you will save $3-4k in fees and interest payments.

It can take longer to resell the flip retail than it can take to owner finance it or rent it with a buy and hold investment. So that is something to remember.

Of course, some houses work better as buy and hold investments and some are better as flips. It depends on the size of the home, location, number of bedrooms and more when you buy as a San Antonio real estate investor.

Overall, the strategy I tell most investors with limited capital is to do 3-4 flips, and then take the capital and do a buy and hold investment with owner financing. That way you are combining the best of both worlds with your out of state investment property investing.

 

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Why Our Investors Still Buy In San Antonio

I advertise a lot online and on Craig’s List to find new cash buyers out of state for our San Antonio investment properties and San Antonio turnkey properties.

I want out of state property investors to know they are dealing with a serious San Antonio real estate investor and operator in me. I know what I am doing and I have a long track record that proves it.

Sometimes, however, I get silly responses from some of my ads from negative, bitter types who don’t like my San Antonio real estate investing. Usually they are failed real estate investors, in my experience, and they’re jaded and cynical. Here’s the most common silly email I get:

Negative Type: ‘If you’re so rich, why don’t you just buy the house yourself?’

Me: ‘Bye.’

I do not waste my time debating with negative people. But here is the answer to that question: I buy houses in cash every month that I do not find a buyer for 🙂. If the contract is about to expire, I buy it cash and hold onto the property. I raise the price by $5000 and I look for another investor to sell it to. I find one eventually.

Example: This below under market value San Antonio turnkey property was for sale for $55,000:

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  • Address: 262 Bogle St. San Antonio, TX 78207-7471
  • Year Built: 1946
  • Description: Under market value cash flow investment, excellent back yard, well established neighborhood, 4 bedrooms, 2 bath, 1236 sqft, lot size: .16 acres, estimated yearly taxes: $2,000.00, estimated yearly insurance: $700, estimated repairs: 25K includes paint in/out, new HVAC, flooring, foundation, update kitchen/baths, etc.
  • ARV:  $99,900.
  • Cash Price: $55,000.

I did not find a buyer for the Texas turnkey property in time. So I bought the San Antonio wholesale property myself – cash – and a month later I sold it for $65,000 to an investor who used hard money. I made $10,000 on the house that no one wanted :).

I do that about once per month. But there are other reasons I still buy and sell wholesale properties in San Antonio: Because I love it! Most successful entrepreneurs never retire.

My real estate mission also is to transform San Antonio neighborhoods and clean up the city; a lot of progress has been made and I am proud of the part I have had in that. But to make more progress, we need out of state property investors to bring in more capital.

That is why I continue to advertise for out of state property investors in San Francisco, Seattle, Los Angeles, San Diego and Las Vegas, among other places. Those are good places to sell Texas turnkey properties.

My last word on this subject to the negative types is this: Your chances of real estate investing success are much lower if you have a bad attitude. Wise up.

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How I Earn Money in Real Estate Investing While Others Fail

I have been a San Antonio property wholesaler and investor for 15 years. No matter if the market is up or down, I always make money. In all those years, many investors have come and gone, and yet I am still making money as I always do.

What makes some investors succeed and others fail? Lots of things, but in my experience, I often succeed in investing in under market value San Antonio properties where others fail for a few big reasons:

#1 I Never Get Greedy

I cannot tell you how many times I have had this exact conversation with an ‘investor’:

Me – ‘Hi Mr. Investor! I have this $50,000 San Antonio wholesale property for sale. You should buy it, I’ll do $10,000 in rehab and then resell it for you with owner financing. You’ll make $650 per month and earn 12% per year. A great buy and hold.’

Investor – ‘12%? That sucks! I want 20%!’

Me – ‘Enjoy Detroit, ROI shopper. Bye.’

The purpose of this illustration is to point out that human greed prevents many investors from making money. Many investors always want to make a grand slam on 1 deal. They aren’t happy with with $650 per month on a buy and hold in strong economic market such as San Antonio. No, they want to make 20% however they can….even if it means buying in a really bad area. They want to make more on a single deal than is realistic.

Working in San Antonio in under market value properties offers many great advantages: It’s a booming market, population is growing, revitalization all over town, low unemployment, business friendly, and cheap real estate.

On the down side, because properties are less expensive, you are not going to make $500,000 on a deal like you will in San Francisco. But the ENTRY COSTS for San Antonio are so much cheaper! Take full advantage of that and do lots of small deals and make a bundle!

The way that I make up for that is by never getting greedy. I never turn up my nose at making $5000 or $8000  on a deal, or $650 a month on a buy and hold.

I do hundreds of small transactions per year, and that is how I managed to build $40k per month in real estate cash flow.

Don’t get greedy, investors. It will cost you.

#2 I Don’t Live in Yesterday’s Real Estate Market

Here’s another real life conversation I have had with many investors:

Me: ‘Hi Mr. Investor! This house here is $55,000 and you will make $19,000 on the flip.’

Investor: ‘$55,000!?! It was $44,000 18 months ago! What a rip off!’

Me: ‘See ya.’

Real estate markets change. Distressed properties in San Antonio are more expensive than three years ago. Many investors will look at a property that costs $55,000, one that they could make 13% on per year, and complain that the house was $40,000  in 2013. So what? Markets change! The property is still dirt cheap and you will still make a good return.

In this situation, here is what happens: I have the wholesale San Antonio property under contract. The investor passes on it. So, I buy it cash, I rehab it, and I owner finance it and make all the money. 🙂

Below is a great San Antonio wholesale property deal that if someone does not buy this month, I’ll buy it myself and I will make all the money.

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    • Address: 820 South San Manuel St., San Antonio TX
    • Year Built: 1950
    • Description: Under market value investment property, three bedroom, one bath that has 928 square feet. Beautiful home with TWO exterior storage units – this is a MAJOR selling point for the end buyer; most buyers are blue collar contractors, and they need their tools to be completely secure.
    • Max After Repair Value: $89,000.
    • Cash Price: $59,000.
    • Exit Strategy: Owner finance this out of state investment property with positive cash flow with only $10,000 in repairs completed in 30 days – $900 per month, $5000 down, 30 year note, 10% interest. This San Antonio investment property offers passive cash flow with no maintenance.
    • Alternative Exit Strategy: $10,000 in repairs and flip/resell retail – maximum ARV is $89,000. Profit $15,000-$20,000.
    • Notes: We recommend that you owner finance this out of state investment property because you will have no maintenance expenses. ROI will be ~13.7%.

In short, don’t get greedy and don’t live in yesterday’s real estate market, out of state investment property investors!

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How I Have Succeeded As I Property Wholesaler In San Antonio

I have been wholesaling and investing in under market value properties in San Antonio since 2001. I have been very successful because I have avoided some of the most common mistakes that many San Antonio property wholesalers make:

  1. Having no emergency cash: I have been successful enough with San Antonio investment properties that I have plenty of cash when I need it. The problem that some beginning wholesalers have is that they don’t have much money. It’s nice to be able to wholesale properties because you don’t always need to have a lot of capital to make money. However, if you do not get the house sold, you have to buy the house. In my case, I am able to buy the house myself if it does not sell, and then I usually mark it up and make at least $5000 when I sell it eventually.
  2. Not having a good buyer’s list: Many wholesalers in San Antonio real estate investing struggle to develop a good buyer’s list because it’s hard to find cash buyers. It takes a lot of work and networking. You should never wait until the property is under contract until you find cash buyers. Finding cash buyers is an ongoing process that you should always be doing. I am always looking for cash buyers everywhere I go, and I also market heavily on Craigslist and through my website for cash buyers. I have found many good out of state investment property investors this way.
  3. Remember the needs of the buyers. It is easy to get too focused on your assignment fee as a San Antonio real estate investor. If the price of the house is too high, the end buyer may feel there is no money to be made. I am very good at negotiating a low price and getting the rehab numbers very close to reality. I also can recommend one of my excellent, inexpensive crews to rehab the San Antonio wholesale property to make sure that the investor is happy with his profit.
  4. Check the house carefully. Either pay to have it inspected or be really good at inspecting houses yourself. If you end up putting a house under contract with very expensive, unknown problems, you could end up losing your rear.
  5. Paying too high a price: Buying and selling under market value properties is fun and it is easy to lose track of the bottom line. If you pay too much money, you will never be able to turn a profit.
  6. Crunch numbers: Before you buy or put a wholesale property under contract, you have to know that it is worth it. I am now a real estate agent so I am able to run my own comps and determine my ARV. So, you figure 70% of the ARV, minus your profit, and that is the highest price you can pay. Do not pay more than that or you will lose money.
  7. Bad pricing: If you do not get any offers on your property after a month, you may have priced it too high.

By avoiding those common problems with San Antonio wholesale property, I have been very successful in my investing career.