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Wholesaling Real Estate in Texas

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This niche in the real estate market presents investors with an opportunity to make low-risk moves that provide modest and steady returns by doing the footwork to match buyers and sellers. Like any lower-risk investment opportunity, when you wholesale real estate in Texas, it is not entirely risk-free, and it does come with lower profit margins on each transaction. Still, it involves less work than flipping or holding a property and managing it.

Texas

Wholesale Laws

When it comes to wholesaling in Texas, you are allowed to market your services without a real estate license. There are some restrictions and requirements that separate advertising wholesaling services and advertising properties on the real estate market though.

 

The most prominent of these requirements is that the wholesaler advertises the rights they provide to a contract to buy the property, not the property itself. This distinction is key to distinguishing between a licensed real estate broker’s purview and unlicensed but legal wholesaling activity. So why is that?

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Broker’s License

Texas real estate law requires a broker's license to market properties or property options, contracts that can be exercised any time.

Contract Rights

It does not require a license to sell contract rights to a sale at a definite future time under the law as currently written in 2021.

Contract to Buy

To be within the law, any marketing done must fully disclose the nature of the interest, meaning you have to say it is a contract to buy and not the property itself that is being made available.

Transaction Interest

You may also acquire an option and then exercise it while assigning the sale to your eventual buyer, provided you advertise your interest in the transaction to the buyer.MLS data.

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Play by the Rules

Make sure you consult with experts on Texas real estate law about individual moves you make in the marketplace to stay within the lines, as the laws in this state are not entirely clear to lay readers.

You could also consider getting a broker’s license, which would allow you access to many other real estate investment opportunities in the state.

Advantages to a broker’s license include not only the ability
to market properties directly to the public but also:

Access to the state's MLS, allowing you to browse property listings for investment opportunities and pricing research.

Opportunities for social networking with other investors through state trade associations & industry groups.

The ability to move properties without worrying about running afoul of Texas real estate wholesaling laws.

What’s Next?

Once you have decided whether to approach wholesaling on its own or pursue a license and broaden your approach to investing in the state, the next step is to identify the market conditions that work best for wholesaling.

What to Look for?

Best Market Conditions for Wholesaling Houses in Texas

Demand Analysis

Wholesalers are able to find buyers and sellers easily when the buyers are convinced of the rising values in an area providing the profit potential. To find those conditions, you need to look for the regions that have increasing property demand.

Texas Buying Power

In Texas, many communities have seen booming economic growth in recent years, leading to increased demand for turnkey properties and increased investor activity. These are the areas where you can most easily locate buyers once you have leads on buildings ready to sell.

Best Cities for

Wholesaling & Flipping Houses in TX

So, where should you go right now for a profitable wholesaling environment?
Do your research to keep track of when they peak and where the new hotspots are, but right now, you can count on high flipping activity in:

If you want to know where to look for new hot spots, check out announcements about significant economic developments and job providers moving into the state.

That’s where your next high-demand property market is most likely to be.

Your next step?

Using BatchLeads to track down motivated sellers in those markets means getting in touch to set up service if you don’t already have it.

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