Tammy Garofano has learned a few lessons during her 7+ years as a buy and hold real estate investor in Texas.
Early on, she learned the hard way how important it is to conduct a thorough background check on potential renters. And more recently, she easily discovered how profitable a buy and hold property investment could be when working with a real estate wholesaler.
Finding Rental Properties through a Wholesaler
Tammy recently purchased a 10-year-old home in “near perfect condition” as a buy and hold investment. She had no time nor money spent searching and negotiating the deal as the home was presented to her as an available wholesale property through Catalyst Funding.
“It was immediately attractive,” Tammy says. “The house was perfect for a rental. The area is expanding and the market is going up, so I knew I wanted to hold it and not flip it.”
Tammy, who has worked for nearly 15 years in the real estate industry, says she couldn’t believe how seamless and easy it was to get the property. She closed in only 10 days, with Catalyst handling everything from finding the amazing property to closing the deal.
As a property landlord, her time and effort are better spent on getting the right tenants and ensuring her properties are being maintained.
Real Estate Success Story: Wholesale to Buy & Hold
Check out Tammy’s success story on purchasing an available wholesale property as a buy and hold real estate investment:
The property: A 1,800-square-foot home in the expanding community of Richmond, Texas. The 3-2 home was only 10 years old and in near perfect condition.
How the property was found: It was presented to her as an available wholesale listing through Catalyst Funding. She had no time searching nor negotiating the deal.
Purchase price: $126,000.
Rehab work: Replace the backyard fence.
Cost of Rehab: Only the cost of the fence. Minimal.
Timeline: 10 days to close.
Profitability: Tenant moved in within 30 days. Rent set at $1,450, with the potential to increase as the market continues to go up.
ARV: Already at $165,000 with an appreciating market.
Why this property & exit strategy: “Easy cash flow,” says Tammy.
Working with a Real Estate Wholesaler
A good property wholesaler should be an expert in finding and negotiating the best real estate opportunities for you. He or she should handle the searching and contracting so you can focus on your investment strategies and profitability.
To get started working with a wholesaler, get your financing in line. Real estate wholesalers typically require a preapproval letter showing your financing is in place before they will negotiate with you.
An easy way to accomplish this is to get pre-approved for a hard money loan. Many buy and hold investors choose temp-to-perm financing (hard money to conventional) as it allows you to quickly and efficiently secure a property and turn it into a long-term investment.
With financing in line and a wholesaler who understands your investment strategies, you’ll be on the fast track to success in real estate.
Catalyst Funding is a hard money lender located in Houston, Texas. As active real estate investors ourselves, we also have wholesale properties available through our parent company, Saxum Real Estate.
For more information on our wholesale properties and hard money loans, contact Catalyst today. 832.648.3626