Texas Real Estate Wholesaling Guide (2023)

Texas is an exceptional state for real estate wholesalers, offering many opportunities across its major cities. With its diverse economy, population growth, and thriving real estate markets, Texas provides an ideal landscape for wholesalers to establish and grow their businesses.

The state has numerous bustling cities with unique and thriving real estate markets.

Houston, the largest city in Texas, presents a dynamic real estate market with abundant wholesale opportunities. The city's robust economy, driven by industries like energy, healthcare, and aerospace, fuels a high demand for housing.

Wholesalers can utilize Houston's affordable housing prices, attracting investors seeking properties with strong potential for appreciation and rental income.

Dallas boasts a vibrant real estate market that appeals to wholesalers. With a diverse economy encompassing finance, technology, and logistics sectors, Dallas offers a steady influx of investors and homebuyers.

The city's thriving rental market and strong population growth create a favorable environment for wholesalers to find profitable deals.

Austin, the state capital of Texas, stands out for its rapid economic growth and booming real estate market. Known as a technology and innovation hub, Austin attracts a young and affluent demographic, driving demand for rental properties and investment opportunities.

Wholesalers can tap into Austin's competitive market by targeting areas with potential for revitalization or focusing on niche markets that cater to the city's unique demographics.

With its rich history and cultural heritage, San Antonio presents compelling opportunities for real estate wholesalers. The city's affordable housing market, growing population, and strong military presence make it an attractive destination for real estate investors.

Wholesalers can leverage San Antonio's diverse neighborhoods and varying property types to find lucrative residential and commercial property deals.

Fort Worth's expanding economy, diverse job market, and affordable housing options make it an appealing destination for real estate investment.

Wholesalers can explore Fort Worth's emerging neighborhoods and niche markets to uncover opportunities for profitable deals.

Other major cities in Texas, such as El Paso, Corpus Christi, Lubbock, and Amarillo, present unique dynamics and real estate opportunities.

These cities feature their own economic drivers, housing markets, and rental demands, providing wholesalers with various options to diversify their portfolios.

Beyond the major cities, Texas offers numerous smaller markets to which wholesalers should pay attention. Towns like Waco, College Station, Abilene, Tyler, and McAllen have localized advantages, such as lower competition, untapped potential, and unique market niches.

Wholesalers who venture into these smaller markets can discover hidden gems and seize opportunities that may be less readily available in larger cities.

By delving into the distinct characteristics and local dynamics of each city in Texas, wholesalers can uncover a wealth of real estate opportunities.

This comprehensive guide will equip you with the essential resources, strategies, and steps to successfully wholesale properties in Texas, enabling you to capitalize on the state's thriving real estate market and position yourself for success as a real estate wholesaler.

Get ready to unlock the potential of Texas's real estate market and position yourself for success as a real estate wholesaler.

What Is Real Estate Wholesaling?

Welcome, real estate wholesalers from the great state of Texas! If you're interested in exploring the world of real estate investing, specifically wholesaling, you've come to the right place.

Wholesaling is a strategy within the realm of real estate investment where an individual or company acts as an intermediary between motivated sellers and potential buyers.

Simply put, a wholesaler finds distressed properties that are available at a significant discount and then assign the contract to an interested buyer for a fee.

This method allows wholesalers to profit without the need for significant financial resources or the responsibility of property ownership.

By identifying lucrative deals, building a network of buyers, and honing negotiation skills, wholesaling offers a unique entry point into the real estate market, making it an appealing avenue for many aspiring investors.

So, if you're passionate about real estate and eager to explore the potential opportunities wholesaling can bring, let's embark on this exciting journey together!

How to Start Wholesaling Real Estate In Texas?

1) Educate Yourself: Begin by educating yourself about the fundamentals of wholesaling real estate. Familiarize yourself with the concepts, strategies, and best practices involved in successful wholesaling. Wholesaling University is a valuable resource for beginners, a free course that provides comprehensive guidance on real estate wholesaling.

2) Identify Target Market: Once you have a solid understanding of wholesaling, research and identify your target market. Consider location, market trends, demand, and potential profitability.

3) Learn Texas Real Estate Wholesaling Laws & Contracts: Familiarize yourself with the laws and regulations governing real estate wholesaling in Texas. Understand the contracts commonly used in wholesaling transactions and ensure compliance with legal requirements.

4) Partner With Other Wholesalers: If possible, establish relationships with experienced wholesalers and seek mentorship from seasoned professionals who can provide guidance and support throughout your wholesaling journey.

5) Build a Cash Buyers List: Cultivate a list of potential cash buyers actively seeking investment opportunities. Network with investors, attend real estate meetups and utilize online platforms to connect with potential buyers.

6) Find Motivated Sellers & Distressed Properties: Implement targeted marketing strategies to identify motivated sellers and distressed properties. Utilize direct mail campaigns, online advertising, driving for dollars, and networking to locate properties with the potential for discounted purchase prices.

7) Put Distressed Properties Under Contract: Negotiate with motivated sellers and secure purchase agreements for distressed properties at a price advantageous for wholesaling. Ensure the contract includes an assignment clause that allows you to transfer your rights to another buyer.

8) Assign the Contract to Cash Buyer: Once you find a cash buyer interested in the property, execute an assignment of the contract, legally transferring your rights and obligations to the buyer. Verify that the cash buyer is capable of fulfilling the purchase.

9) Close the Deal and Collect Assignment Fee: Facilitate the closing process between the cash buyer and the seller. Upon closing, collect your assignment fee, which is the difference between the original contract price and the price at which you assign or sell the property.

10) Double Close When Necessary: A double closing may be necessary in certain situations. A double closing involves purchasing the property from the seller and immediately selling it to the end buyer in a simultaneous transaction.

Is Real Estate Wholesaling Legal In Texas?

Is wholesaling houses legal in Texas? Yes, it is legal in Texas, regardless of whether you are operating in Houston, Austin, Dallas, or any other part of the state.

However, it's important to have a solid understanding of the real estate laws that apply and ensure compliance with all state regulations governing wholesaling real estate businesses in Texas.

The Texas Real Estate Commission (TREC) has established rules that govern all real estate transactions in the state, including wholesaling houses.

The primary concern arises when wholesalers inadvertently start acting like real estate agents or brokers without the necessary licensing, leading to potential problems.

To avoid such issues, remember that your approach should differ from that of a real estate agent marketing a home to the general public. Your objective is to identify properties and connect them with cash buyers, either through contract assignment or by facilitating short-term sales.

By staying within these guidelines, you can conduct wholesaling legally and successfully in Texas.

Texas Real Estate Wholesaling Laws.

In Texas, the wholesaling of real estate is regulated under the Texas Occupations Code Section 1101.0045, specifically addressing "Equitable Interests in Real Property." According to this code:

(a) A person can acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the contract without holding a real estate license, provided that the person meets the following conditions:

The person does not use the option or contract to purchase to engage in real estate brokerage activities.

The person discloses the nature of the equitable interest to any potential buyer.

(b) However, if a person sells or offers to sell an option or assigns or offers to assign an interest in a contract to purchase real property without disclosing the nature of that interest to a potential buyer, then they are engaging in real estate brokerage activities, which requires a valid real estate license.

This regulation was added by Acts 2017, 85th Leg., R.S., Ch. 974 (S.B. 2212), Sec. 1, and became effective on September 1, 2017.

It aims to ensure transparency and consumer protection in real estate transactions involving equitable interests in Texas.

Do You Need A license to Wholesale Real Estate In Texas?

While having a real estate license for wholesaling real estate in Texas is not required, obtaining one can offer numerous advantages.

A license provides you with access to a broader network of sellers, buyers, and investors, allowing you to expand your reach and tap into additional opportunities.

Moreover, with a license, you can earn real estate sales commissions by representing buyers and sellers as an agent. Additionally, it grants you access to the Multiple Listing Service (MLS), which enables you to purchase properties and sell them, particularly if you choose to pursue the wholetailing approach.

Ultimately, obtaining a real estate license can enhance your professional capabilities and open doors to a wider range of possibilities within the industry. Moreover, with ever-evolving real estate laws, licensing should protect you from any future Texas wholesaling statutes.

Do You Need An LLC to Wholesale Real Estate In Texas?

In Texas, having an LLC (Limited Liability Company) is not a mandatory requirement for wholesaling real estate. However, if you are considering forming an LLC for your real estate wholesaling business, we recommend checking out Incfile.com.

Incfile.com offers comprehensive services for starting and managing LLCs, including assistance with paperwork, filing, and compliance, making it a convenient option for aspiring wholesalers in Texas.

Is Wholesaling Texas Real Estate Worth It?

Yes, wholesaling real estate in Texas can be worth it. With a strong market, the potential for profitable deals, and the opportunity to generate significant income, wholesaling offers a viable avenue for success.

By honing your skills, building a network, and staying proactive, you can tap into Texas's real estate market and capitalize on its potential for lucrative wholesaling opportunities.

Texas Real Estate Wholesaling Contracts

Understanding wholesale real estate contracts is crucial for success in the wholesaling business. These contracts clearly define the agreement between the seller, wholesaler, and cash buyer, outlining important terms and conditions.

When wholesalers have a solid grasp of these contracts, they can effectively navigate their legal responsibilities, assignment clauses, and contingencies.

This knowledge empowers them to negotiate favorable terms, minimize risks, and steer clear of potential legal issues, ensuring smooth and profitable transactions for all parties involved in the wholesale real estate process.

For step-by-step instructional videos, visit the wholesale real estate contracts page.

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    How Much Can Texas Real Estate Wholesalers Make?

    The amount of money Texas real estate wholesalers can make varies depending on different factors. These factors include the number and quality of deals they find, the market condition, the size of the fees they negotiate, and how well they market and negotiate the contracts.

    Some wholesalers in Texas can make a few thousand dollars per deal, while others can earn even more, sometimes tens of thousands of dollars or higher.

    It's important to know that success in real estate wholesaling requires hard work, making smart decisions, and understanding the local market. By developing their skills, building connections, and being proactive, Texas real estate wholesalers have the potential to earn significant income in this profitable field.

    Wholesaler and Investor-Friendly Title Companies In Texas.

    Our Preferred Texas Title Company | Statewide Closings!

    Title Clearing & Escrow, LLC

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    727.224.1720 cell

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    ​Services Offered: Wholesaling & Investor-Friendly Closings in All 50 States

    Houston Area Investor-Friendly Title Companies

    Declaration Title

    12649 Memorial Drive, Suite F

    Houston, TX 77024

    (713) 827-7800 office


    American Title of Houston

    6910 Chetwood Drive, Houston, TX, 77081

    (713) 995-8200 office


    Fidelity National Title

    1900 West Loop South, Suite 200,

    Houston, Texas 77027

    (713) 622-5732 office


    TransAct Title

    1001 W. Loop S., Suite 100, Houston, TX 77027

    (713) 429-5436


    Valero Title

    1233 W Loop S #1260, Houston, TX 77027
    (713) 552-1370 office


    Capital Title

    5023 Washington Ave. Suite 200, Houston, TX 77007

    (713) 522-7676 office


    First American Title

    601 Travis Street, Suite 1875, Houston TX 77002

    (800) 683-5552


    Old Republic Title

    12505 Memorial Drive Suite 200, Houston, TX 77024

    (713) 465-1137 office


    San Antonio Area Investor-Friendly Title Companies

    Alamo Title Company

    9901 IH 10 West, Suite 101, San Antonio, TX 78230

    (210) 696-8171 office alamotitlesa.com

    Old Republic Title

    10000 IH-10 West

    Suite 106

    San Antonio, TX 78230

    (210) 424-6901


    Allegiance Title Company

    13750 San Pedro, Ste 730

    San Antonio, TX 78232


    Valero Title

    200 Concord Plaza Dr #623, San Antonio, TX 78216

    (210) 477-0173 office


    Capital Title

    10999 IH-10 W

    Suite 125

    San Antonio, TX, 78230

    (210) 202-1660


    Stewart Title Company

    2338 N Loop 1604 W #110, San Antonio, TX 78248

    (210) 764-0800


    Dallas Area Investor-Friendly Title Companies

    OSN Title Solutions

    5307 E Mockingbird Lane, Suite 221

    Dallas, TX 75206

    (972) 797-9900


    Valero Title

    5850 Granite Parkway, Suite 200

    Plano, TX 75024

    (214) 436 - 8550


    Horne & Associates

    1795 Northwest Highway

    Garland, TX 75041



    Chicago Title

    13737 Noel Rd, Suite 100, Dallas, TX 75240

    (972) 701-8153


    Old Republic Title

    8201 Preston Rd #450, Dallas, TX 75225

    (214) 239-6400


    Capital Title

    6116 N. Central EXPY

    Suite 1450

    Dallas TX, 75206

    (214) 765-6014


    Allegiance Title Company

    6030 Sherry Lane

    Dallas, TX 75225

    (214) 373-3500


    Austin Investor-Friendly Title Companies

    Chicago Title

    1409 W. 6th St

    Austin, TX 78703

    (512) 477-9058


    THE Title Company

    8235 Shoal Creek,

    Austin, TX 79757

    (512) 371-9100


    Capital Title

    1801 S. Mopac Expressway

    Suite 250

    Austin, TX, 78746

    (512) 827-3772


    Trinity Title Of Texas

    715 Old Auston Hwy #200, Bastrop, TX 78602

    (512) 308-0900


    Valero Title

    1250 S. Capital of Texas Hwy. Bldg.2 Suite 100, Austin, TX 78746


    Old Republic Title

    108 Wild Basin Road

    Suite 204

    Austin, TX 78746

    (512) 428-8688


    Fort Worth Investor-Friendly Title Companies

    Old Republic Title

    4421 Oak Park Lane

    Suite 102

    Fort Worth, TX 76109

    (817) 920-7990


    Stewart Title

    5600 Clearfork Main

    Ste. 120

    Fort Worth, TX 76109



    Allegiance Title Company

    300 Bailey Avenue, Suite 100, Fort Worth, TX 76107

    (817) 849-6900


    Texas Secure Title Company

    2800 S Hulen St # 115,

    Fort Worth, TX 76109

    (817) 519-8803


    Capital Title

    601 S. Main

    Suite 601, Fort Worth,

    TX 76104

    (817) 756-1471


    Stewart Title Company

    5600 Clearfork Main St

    Ste 120 Fort Worth, TX 76109

    (817) 732-5695


    Texas Real Estate Wholesaler Directory.

    Networking with other Texas real estate wholesalers is a crucial aspect that can significantly contribute to the success of individuals entering the wholesaling business.

    By connecting and collaborating with fellow wholesalers, you gain access to a wealth of industry knowledge, insights, and experiences. The exchange of ideas, strategies, and best practices can sharpen your skills and provide valuable guidance as you navigate Texas's real estate wholesaling landscape.

    To further enhance your networking efforts and connect with a wide range of professionals specializing in real estate investing and wholesaling, we invite you to join InvestorFriend.ly.

    As the ultimate directory of businesses and professionals catering to real estate investors and wholesalers, InvestorFriend.ly offers a platform to build a reliable team of experts who understand the unique intricacies of investment real estate transactions.

    By leveraging the resources and connections available through InvestorFriend.ly, you can strengthen your network and gain a competitive edge in the Texas real estate wholesaling market.

    Texas Real Estate Investment Groups.

    Texas real estate wholesalers can greatly benefit from attending real estate investor meetups. These gatherings provide a valuable platform for networking and learning from experienced investors and industry professionals.

    Wholesalers can connect with potential buyers and partners by participating in meetups, expanding their professional network, and increasing deal opportunities.

    Additionally, attending these events allows wholesalers to stay up-to-date with current market trends, innovative strategies, and emerging opportunities.

    To explore upcoming real estate investor meetups in your area, check out the following links:

    Houston Area Real Estate Meetups (In Person)

    San Antonio Area Real Estate Meetups

    Dallas Area Real Estate Meetups

    Austin Area Real Estate Meetups

    Fort Worth Real Estate Meetups

    Best Texas Wholesaling & Investing Facebook Groups.

    Texas real estate wholesalers should join local real estate investing Facebook groups in their market as they offer many benefits. These online communities provide a platform for connecting with like-minded investors, sharing knowledge, and accessing valuable resources.

    Wholesalers can expand their network beyond their local market by engaging in these groups. They can connect with out-of-state and even overseas buyers actively seeking investment opportunities.

    This opens up new avenues for expanding their reach and tapping into a broader pool of potential buyers. Additionally, participating in real estate investing Facebook groups allows wholesalers to stay updated on industry trends, gain insights from experienced investors, and potentially uncover amazing deals.

    Below are some Facebook Group suggestions:

    Houston FB Groups

    San Antonio FB Groups

    Dallas - Ft Worth FB Groups

    Austin FB Groups

    In Conclusion

    Venturing into Texas real estate wholesaling presents a bright and promising opportunity. With a thriving market, affordable properties, and diverse chances for success, Texas offers an inviting landscape for wholesalers.

    By following the essential steps, connecting with industry peers, and staying informed about the local market, you can set yourself up for a rewarding journey into the real estate investment industry.

    Remember, dedication, persistence, and a commitment to continuous learning will be key to unlocking the lucrative opportunities that Texas's real estate wholesaling market holds. So, why wait?

    Take the first step towards your wholesaling success by joining Wholesaling University, our free course that provides comprehensive guidance and support for aspiring wholesalers like you.

    Get ready to embark on an exciting adventure and unlock the potential of Texas's real estate wholesaling market.

    Join Wholesaling University!

    Wholesaling University is a totally free course that will systematically walk you through the entire real estate wholesaling process.

      Join Wholesaling University!

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      estate wholesaling process.

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