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.

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.

 

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.

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!

San Antonio Investment Property Is Still Hot in 2016

Some investors might think that the San Antonio investment property market has slowed down given the decline in oil prices. But you would be wrong!

I am a San Antonio investment property wholesaler, and I am finding that sales are still strong, and prices are rising. The volume of houses that were sold in the city increased in January, and the cost to buy a house generally has gone up.

Total residential sales increased nearly 7% in January 2016 from a year ago, with a total of 1534 houses sold.

The median price of a house in San Antonio is still low – only $186,100 from $176,700 a year ago.

Overall, San Antonio is still a seller’s market, and inventory is low with demand high. I know personally I have sold 15 under market value properties in San Antonio since the beginning of the year. Investors who used to buy San Francisco investment property love to come to San Antonio and buy a distressed wholesale property for $50,000! And overall, the consumer market is still strong, with only a 3 month supply of houses available.

San Antonio’s strong investment property market is being driving by a strong economy, growing population and low interest rates. And it helps that you can still buy a single family home here for under $200,000.

I still am able to find really good under market value deals for out of state investment property investors, especially a few miles north of downtown in the 78201 zip code. Below is a great deal that I have several San Francisco investment property buyers reviewing:

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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.

 

Private Investors Wanted – $50,000-$1 Million

As you may know if you peruse this site, I am a financially retired, under market value property wholesaler and investor in San Antonio TX.

I am seeking cash partners to purchase 3 bedroom, 1 bath distressed properties in San Antonio TX. I find the houses. You fund the purchase. I do the rehab in 30 days.

We split the profits 50/50. Or, I can owner finance/rent the property out for you.

Remember, I handle the entire project from acquisition to rehab to resale. You ONLY FUND the deal.

My goal is to transform the city of San Antonio TX into homeowners and to improve neighborhoods.

I need your help. Please contact me.

I particularly like to work with out of state property investors who once bought San Francisco investment property, Los Angeles investment property, and Seattle investment property.

3 Ways to Make Money in Distressed Properties

Many under market value and distressed property investors have entered the market in the last five years. After the mortgage meltdown of 2007-9, almost four million families who used to own their own home now rent. That has created a significant and growing market for rental properties.

This has created a lot of new distressed property investors, which is what I have been doing for 15 years. I invest in San Antonio investment properties and sometimes wholesale Texas properties to cash investors. As a San Antonio property wholesaler, I have done very well in the last 10 years here in up and down markets.

Since the mortgage melt down, half of all investment property purchases in the US are in distressed houses and half of them are in cash.

If you are thinking about getting involved in under market value, distressed properties to make real estate cash flow, there are several ways you can do it:

Do It Yourself

Some distressed property buyers and investors find their own fixer upper and rehab it themselves or pay a contractor to do it. You will really need to beat the bushes to find an under market value fixer upper; there is a ton of competition.

However, if you do not have any experience, I personally would not recommend buying and rehabbing the house totally on your own. There are just too many places where you can get in a lot of trouble.

One way to do it is to find a local expert with a good rehab crew and have them wholesale you a property that is under market value and has reasonable repair expenses. That company may be able to guide you on doing the rehab. I have actually done this myself in San Antonio. This father and son have bought three houses from me wholesale, and then they rehabbed it themselves with my guidance. They have managed to resell each house retail for a 15-20k profit.

Turn Key Properties

If you do not have the time or the ability or desire to rehab a house, you can buy a fully rehabbed San Antonio investment property or out of state investment property, sometimes with a tenant already in it.

If you are going to buy turnkey properties, you will want to buy in a market with affordable real estate, but cheap real estate isn’t the only criterion. Also, you want to buy in a city where jobs and population growth is increasing steadily. I am not objective, but I am a huge fan of San Antonio TX investment properties because real estate is inexpensive, the economy is strong and the population is growing.

And when the market dips, the downturn is mild in TX. So if you need to unload a property in a pinch in Texas, you probably can do it without losing your rear.

Note that some turnkey property providers will charge you a lot for the house because they have to cover their rehab costs. You won’t end up making as much money per property as if you do it yourself, but it’s less hassle, so it can be a viable alternative for some investors.

The Owner Finance Option

I have come up with my own unusual way of making money on distressed San Antonio investment properties for the last 15 years that combines a bit of both strategies above.

Doing a property yourself obviously has the risks of finding a good property on your own and getting a good price, and all of the risks of doing your own rehab. And turnkey properties are all done for you, but the price is higher and the returns lower.

In my system, I find the under market value distressed properties in San Antonio. I negotiate a good low price, and then wholesale it to the out of state property investor.

I do a limited rehab of the property for $10,000 to $20,000. After that, I usually will help the investor to owner finance it to a local family who have steady jobs. The advantage here is that the property is then maintained by the end buyer. You do not have to worry about maintaining the house from a distance.

I am a very experienced San Antonio wholesale property expert, and my investors usually make 12-15% on these distressed properties. It’s definitely something to consider, instead of doing it yourself with all the risks, or paying a higher price for a turnkey property.

 

6 Myths About Wholesaling Investment Properties

I have been a property wholesaler in San Antonio TX for 15 years and I have seen many people come and go in that time.

Below are the most common myths that I see in property wholesaling with San Antonio investment property.

  • You have to have cash to wholesale property: No, it is not essential when you are getting started to have a lot of capital. In many of my deals, I am not actually taking possession of the under market value San Antonio property with cash. Rather, I just have the property under contract for a certain period of time until I find a buyer for it.

Of course, the key is to find a good property under market value, and THEN be able to find a good buyer for the property before the contract expires. Now this is where it DOES HELP to have your own cash. I have my own cash, so if I have not found a buyer yet, I just buy it myself with cash and mark it up, and then put it for sale again.

  • You can be an effective wholesaler without knowing the market well. Some investors really believe this, but the fact is, I am able to find great under market value investment properties in San Antonio because I am a local market expert. I often do not even need to look at comps to know what a property should sell for.
  • You have to be rich to do well in real estate from the start. I didn’t have much capital when I first started in real estate investing and had $40,000 in college debt. But by 28 I was financially retired, only my sixth year in real estate.
  • You have to have a real estate license to be a property wholesaler. Nope! I made a couple million dollars in real estate wholesaling in San Antonio before I got my real estate license. I do like having my real estate license now, because I am no longer dependent on real estate agents to show me properties.
  • You don’t have to have a lot of experience to be successful in wholesaling. In my view, you do need to have experience, but you can gain a lot of that at the beginning by working with expert real estate investors. If you don’t have much experience in real estate investing, you should pair up with an expert to help you get to know the ropes (such as yours truly but you do need to have cash to invest).
  • You have to borrow money from banks. No way! I borrowed more than $2 million from private investors when I first got started in under market value real estate investing in San Antonio. You just have to ask around, but you can eventually find money to borrow, if the deal is good enough.

I now am a successful property wholesaler in San Antonio, and so can you if you remember most of the above.

 

How I Find Excellent Under Market Deals in San Antonio Wholesale Property

Some of the under market value property investors I work with think that finding wholesale property in San Antonio is difficult. I do not agree. I have been a San Antonio wholesaler of investment properties for 15 years, and I never have a problem finding excellent below market value investment property in San Antonio because I am a well known cash buyer of investment property here.

To find the best wholesale deals in San Antonio, you need to work with an expert who is well connected and experienced in this marketplace. Most beginner wholesalers will try to buy under market value houses at auctions. The problem with this is that everyone and their mother goes to property auctions to find a cheap San Antonio investment property.

By the time all of the other under market value wholesalers are done bidding, the price of the house usually is above market value.

It is very difficult to make a profit on a San Antonio wholesale deal that is at market value.

That is why the smart investor works with an expert in wholesale properties in the Alamo City.

I have been buying and selling investment property here since 2001, and I have a huge network of agents and investors. I also have two other wholesale companies that work for me. They are able to find wholesale properties in San Antonio for me. I also buy many investment properties here through estate sales.

I am an expert at negotiating a low price for myself and/or my investors. Most of the houses I buy are at least 30% under market value as of February 2016.

Below is an excellent 2 for 1 investment property deal that I got through an estate sale in San Antonio. Good luck finding a deal like this at an auction.

Out of state investment property investors, this San Antonio investment property has two houses on one lot and has needs only $10,000 in rehab before you owner finance it for $5000 down, $900 per month.

Note that this San Antonio investment property has two houses and is very easy to sell, given the extended families of most of our buyers.

We will complete the rehab for the out of state investment property investor and will resell it with owner financing. Rehab will be completed in three weeks.

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    • Address: 3230 La Violeta St., San Antonio, TX 78211-3728
    • Year Built: 1950
    • Description: 2 homes for the price of one;  Home #1, 3 beds 2 bath, 928 sqft, built: 1950, lot size: .15 acres, home needs minor plumbing, carpentry, paint, cleaning, estimated rehab cost 10K, Home #2, 2 beds, 1 bath, 600 sqft, has been remodeled no repairs needed
    • Cash Price: $69,900.
    • Exit Strategy: Owner Finance with 10K repairs: 5-10k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K, ROI will be 13-14% per year.
    • Additional Costs: $1500 commission to me on wholesale, $2000 in closing costs, $1500 commission to me on resale, $2000 in closing costs on resale (taken out of $5000 down payment from buyer).
    • Profit Year 1: 12% ROI
    • Profit Subsequent Years: 13% ROI

In summary, if you want low priced San Antonio wholesale property as an out of state investment property investor, work with an expert with 10 or more years of experience and has done at least 500 deals in San Antonio.

$69,000 Under Market Value Property – 13% ROI

Out of state investment property investors, this San Antonio investment property has two houses on one lot and has needs only $10,000 in rehab before you owner finance it for $5000 down, $900 per month.

Note that this San Antonio investment property has two houses and is very easy to sell, given the extended families of most of our buyers.

We will complete the rehab for the out of state investment property investor and will resell it with owner financing. Rehab will be completed in three weeks.

front man

    • Address: 3230 La Violeta St., San Antonio, TX 78211-3728
    • Year Built: 1950
    • Description: 2 homes for the price of one;  Home #1, 3 beds 2 bath, 928 sqft, built: 1950, lot size: .15 acres, home needs minor plumbing, carpentry, paint, cleaning, estimated rehab cost 10K, Home #2, 2 beds, 1 bath, 600 sqft, has been remodeled no repairs needed
    • Cash Price: $69,000.
    • Exit Strategy: Owner Finance with 10K repairs: 5-10k down, $900.00 monthly P/I, 30 year amortization, 10% interest, Price: 89K, ROI will be 13-14% per year; or do $25,000 in rehab and resell for $115,000, $1150 per month.
    • Profit Year 1: 12% ROI
    • Profit Subsequent Years: 13% ROI
    • Contact us for more information or to make offer.
    • Rental Comps 3230 La Violeta St Sold Comps 3230 La Violeta
    • Why You Should Believe My Numbers

This type of below market value investment property is perfect for a San Francisco investor, Los Angeles investor, Seattle investor or San Diego investor. You are not a landlord and will enjoy steady real estate cash flow.