Finding good deals in real estate is what it takes to be a successful property investor. If you can do this, you can make money.
The question is: where do you find the best properties that will make you money?
For professional house flipper David H. Jones of Texas, he recently acquired a profitable property investment through wholesalers at Catalyst Funding. Check out his story.
Real Estate Success Story: Right Price, Right Location
The property: A 1,730-square-foot home in extremely poor condition in Houston, Texas.
Purchase price: $55,000
Rehab needed: Complete renovation.
Why he wanted this property? The home was priced aggressively and in a neighborhood where comp prices were going up. It was the only bad house around and perfect for a fix and flip. Simply put: right price, right location.
Rehab work included: Roof, plumbing and electrical work. Tearing down walls for a new kitchen configuration along with cabinets, countertops and appliances. Converting a single car garage into living space. Bathroom remodel. New air conditioning, doors, flooring, lighting, interior and exterior paint. New landscaping and fencing.
Cost of rehab: $31,000
Resale price: $134,900!
Net profit: $33,000 (this includes all costs - closing, mortgage payments, overages and realtor fees)
Turnaround Time: 130 days from acquisition to sell.
Making Deals with a Property Wholesaler
David, a full-time property investor who rehabs multiple single family homes a year, says the key to a successful flip starts with buying the house at the right price. “Construction issues occur in this business, and if you purchased the home for too much, you may lose your profit fixing unforeseen issues,” he says.
This specific property was also in a great location. It was the only “ugly” house in a neighborhood where property values were increasing. In fact, the house sold above its original appraisal of $123,000.
A real estate wholesaler is essentially a direct link to properties that are perfect investment opportunities. The strategy of a wholesaler is to search, find and buy properties priced below market and then pass them off to real estate investors who fix them up to flip or hold for their own profitability.
A successful wholesaler knows how to find the best properties and does the negotiating, saving property investors time and money.
How to Get a Great Deal from 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 -- a short-term loan that gets you cash fast for investments and quick turn properties. Real estate investors choose hard money because it’s fast, flexible, and most importantly, designed for property investors.
Also, sign up for wholesale newsletters and e-lists. At Catalyst, our available wholesale properties go out first to those on our wholesale e-list. Sign up now.
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