West DFW REI Group

 

Wholesaling real estate has a reputation for being the “easy” way to get started in investing — and in many ways, that’s true. You don’t need a ton of cash. You don’t need a license. And if you play your cards right, you can make a good profit without ever owning the property.

But here’s the thing no one tells you when you're getting started: wholesaling can go sideways fast.

Maybe your buyer backs out last minute. Maybe the seller gets cold feet. Maybe a title issue pops up that throws everything off course. The truth is, if you’re wholesaling long enough, a deal falling apart isn’t a matter of if, it’s when.

That’s why understanding the dos and don’ts of wholesaling — and knowing what to do when a deal takes a wrong turn — is so important.

Let’s walk through it.

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The Right Way to Wholesale: What You Should Be Doing

Wholesaling works best when you’re prepared. It’s not about being flashy or cutting corners. It’s about knowing how to create win-win situations and avoid landmines along the way.

✅ Get That Inspection Clause In There

Every wholesale contract should have a solid inspection contingency. This gives you the right to walk away if something unexpected comes up — like major repairs, title problems, or issues with the seller. Think of it as your safety net.

✅ Know Your Numbers

Guessing isn’t a strategy. Know your comps. Understand ... Read More…

 

The TREC contracts used by brokers and agents in Texas do not contain any language regarding assignments. Since the contracts were silent, a TREC contract was able to be assigned without any notice to the seller. All the original buyer needed to do was enter into an assignment agreement with the new buyer and provide a copy of the executed agreement to the title company. 

Then, beginning January 1, 2024, the Texas Property Code was amended, specifically section 5.025. That section of the code always required the original buyer, before they entered into the assignment agreement, notify the new buyer that only an equitable interest was being sold, meaning the buyer did not have title to the property. Starting in January of 2024, an additional requirement was added, requiring the seller to be given notice that the original buyer was going to assign their interest in the contract. Note, it does not state seller must agree to such assignment or be told the terms of the assignment, just be notified. Such notice must be given to the seller prior to an assignment agreement being entered into between the original buyer and the new buyer.  

There are three ways the buyer can give notice to the seller:

1. Include the wording "and/or assigned" in the buyer's name on page 1 of the TREC contract.
2. Add a provision in the contract explicitly allowing for an assignment. (Note, a broker or agent may not add such a provision as this would be defined as practic ... Read More…

 

A wholesale agreement for properties in Dallas-Fort Worth will be important to you as an investor, so make sure you grasp and understand everything about it. Learn more about the process and what to expect in our most recent post!

When two real estate investors/ wholesalers come together to find a distressed property at a low price, a real estate wholesaler agreement or a wholesale real estate contract will be required. The wholesaler enters into a contract with the seller to purchase the property, and then transfers or assigns ownership of the contract to the buyer. In essence, the wholesaler acts as a go-between between the seller and the new buyer, bringing together two people who might not otherwise have come into contact.

Contract Basics

There are many types of investor contracts available in today's investing world.  Some people use a real estate attorney to draft and evaluate for you to ensure that all terms and clauses are legally sound and make sense for all parties involved in the transaction. Many investors use their State-created contracts.  In Texas, we use the TREC 1 to 4 family contract.  Even though numerous templates are available online, you should always have your attorney review your final draft. The contract will normally include the specifics of the property as well as the terms and conditions of payment. Everyone's roles will be clearly defined to ensure that there are no misunderstandings. The TREC contracts are uploaded ... Read More…

 

A business card is not a memoir or biography of you. No one cares how great you are, how long you’ve been in business, your great service, and empty promises, no one believes anyway.

For any of your advertising to be successful, it must answer one very important question in the mind of the reader…

WIIFM?

What is in it for me?

In other words, who cares?

If it doesn’t answer this question, your cards are almost worthless. You have a nanosecond to capture the prospect's attention, and if you fail the cards will hit the trash as soon as you leave.

Fancy graphics, your photo, and any words that don’t contribute to answering WIIFM is a waste of space.

There is only one purpose of a card, sign, letter, ad, or most any other media. It’s not to sell anything… It’s to get the phone to ring.

Here are some common mistakes I see at every Quick Start School when I critique cards:

Don’t answer WIIFM: Leaving no reason to call. Many cards are worded so poorly you can’t tell what business they’re in, much less have a reason to call.

Too hard to read: Caused by a poor card design, with the wrong font, poor color choices, or small print. All fatal flaws.

No Headline: Which is a unique selling proposition, USP, answering WIIFM. An example is … “I BUY HOUSES.” This header is the grabber that stops the eyeball. Your name is not a headline. No one cares.

Using Company Name: It wo ... Read More…

 

What’s stopping you from getting started may be the question you’ve asked yourself for quite a while now. Because this is a simple topic to address, I'm going to keep this post brief today. It cannot be easy to put into practice at times, but the remedy is straightforward.

Here's the million-dollar question: 

"What can I do to overcome my apprehension and procrastination and get started"?

--Get rid of your excuses and your mile-long to-do list.

This week, I've heard more excuses from people who can't seem to get started in real estate investing than I have in a long time. They must wait until the stars are "perfectly aligned" before they can begin. You know, reasons like these:

• I don't know where to start
• I haven't chosen a logo yet.
• I have to make a decision on whether or not to form a limited liability company (LLC).
• I need to decide whether to use a yellow or green postcard.
• I don't have a suitable image to utilize in my marketing materials.
• I'm undecided on whether to use white or colored envelopes for my mailings.
• I'm not sure where my buy-and-hold approach should be focused.
• I'll get started as soon as I figure out if I'll just use my name or have a corporation named after myself.
• I have another course I must complete, and then I will be ready
• I don't have all my I's dotted and T's crossed
• I don't know this, and I don't remember that.

And the list goes on forever! I'm pretty sure there are at least a dozen more of these reas ... Read More…

 
Starting February 1, 2021, Texas Real Estate Agents have the option, but not the requirement, to use the new TREC 20-15 1-4 Family Residential Contract (Resale), which contains new provisions for the Title Insurance Agent to receipt and disburse the Option Fee.  This contract form becomes mandatory for use by all Texas Real Estate Agents after April 1, 2021.

Changes from the prior 20-14 form contained in the new 20-15 contract form include –

      Deleting paragraph 23 dealing with the Option Fee and combining Option Fee provisions into paragraph 5 with the Earnest Money Provisions.

      Both the Option Fee and the Earnest Money are to be delivered to the Title Insurance Agent, referred to as escrow agent in the Contract form.

      The Option Fee and Earnest Money can be delivered in a single check, rather than in separate checks as required previously.

      The new Contract form now provides for a separate receipt of the Option Fee and the Earnest Money, with the receipt of the Option Fee being subtly changed from being signed by the Seller’s Broker to requiring the signature of the escrow agent. Make sure you receive both.

    Under paragraph 5.A(3), “The amount(s) escrow agent receives under this paragraph shall be applied first to the Option Fee then to earnest money, and then to the additional earnest money.”

For ... Read More…

Benefits of Joining Your Local REIA

REIA is an abbreviation for Real Estate Investing Association / Group.  REIA groups or clubs as some are called, are an invaluable tool to meet people from all walks of life who have an interest in real estate investing and to learn all about the REI business.  Members of REIA groups are like-minded groups of men and women “where deals and funding meet.”  Companies have been formed, and deals have been made directly from the relationships developed and information shared at REIA group events.  I refer to them as your real estate investor “watering hole.”  Members attend the “Watering Hole” to learn and find deals and funding. 

Learn more about the benefits of joining your local REIA group through the Infographic below:

Education - Here's a small list of topics you may see at your local REIA:

+ Getting Started

+ Foreclosures

+ Short Sales

+ Nothing Down Purchases

+ Flipping Properties

+ How to Estimate the After Repaired Value

+ Refurbishing & Rehabbing

+ Lease/Options

+ Finding Bargain Properties

+ Writing Offers

+ Building profitable partnerships

+ Marketing to Find Motivated Sellers

+ Marketing to Sell Your Houses

+ Buying Discounted Notes & Mortgages

+ Mobile Homes & Mobile Home Parks

+ 1031 Exchanges & Other Tax Issues

+ Property Management

+ Using Self-Directed IRAs

+ Lawsuit or Asset Protection & Legal Issues

+ How to Fi ... Read More…