Austin RENC – FAQ's
The Austin Real Estate Networking Club gives new and veteran Austin real estate investors a chance to build connections, share real estate investing tips, and grow their businesses. Read on for answers to our most frequently asked questions.
There are many ways to get involved in Austin real estate. If you don’t mind getting your hands dirty, you can buy fixer-upper houses and flip them or turn them into rental properties, short term rentals, or other reliable sources of income. Austin real estate Investors can also apply other investment strategies such as wholesaling, subject-to’s, value add, and many others.
Before investing, get to know real estate terminology and the relevant laws in Texas. Teaming up with an experienced Austin real estate investor and sharing in the proceeds is a great way to build capital and grow a network.
If you are looking for experienced mentors in real estate investing, you can start by signing up for our next free meeting of the Austin Real Estate Networking Club here.
A real estate agent is a licensed professional who helps other people carry out transactions. Real estate agents receive commissions from their clients.
A real estate investor puts money into real estate to make a profit. Austin real estate investors do not receive a salary or commission for their work, but they can earn rental income from the properties they own or sell them to receive great returns on their investments.
You do not need a license to buy, sell, or restore properties. However, a real estate license can help Austin real estate investors in several ways, including:
- Access to a multiple listing service (MLS)
- Additional knowledge of real estate
- A higher profile for networking and negotiating
Most investors choose to focus on the investing side of the business and are glad to partner and pay a real estate agent to help with the sale of the property.
While it is faster to jump into real estate investing if you have cash on hand, there are definitely low-cost ways to get into the market:
- Enter into a profit-sharing arrangement with an investor who has capital.
- Purchase a home and build equity so you can use it as collateral to get loans for future investments.
- Purchase a small apartment building and save money by living in one of the units.
Banks or other lenders put up most of the money a home buyer needs to purchase the house in traditional mortgages. This process generally involves a mortgage approval and requires the applicant to have a good credit rating. It is simpler to buy a house for cash, but many buyers do not have that option.
Owner financing gives the buyer some benefits of a cash sale without having to pay all at once. Essentially, the buyer agrees to pay the seller in installments.
Real estate wholesaling does not involve the purchase of a property. Rather, you enter into a contract for that property and then try to find an investor who will buy it at a higher price.
Wholesale real estate is legal in Texas, but regulations prevent false advertising and other disreputable business practices.
You do not need a real estate or general contractor license to flip houses in Austin because you are the one purchasing the properties and doing the work on your property.
However, house flipping requires expertise in home repair and real estate transactions. Having real estate expertise and construction experience (or partnering with someone who does) may be an advantage in certain situations.
Subject-to real estate transactions involve the seller assuming the obligation to pay the existing mortgage on the house. The mortgage remains in the seller’s name, but the buyer receives the deed to the house and makes the payments. This arrangement allows a buyer to acquire the property without paying cash or going through the hassle of refinancing or trading for a new mortgage.
Subject-to sales are legal in Austin, but they can be complex. It is a good idea to talk to a real estate attorney and experienced Austin real estate investors in your area before attempting one to avoid costly mistakes.
The best way to learn how to make money from real estate investments is to meet and work with Austin real estate investors who already know the ropes. For some, this means taking a formal course in real estate investing. Others prefer more hands-on, practical guidance from Austin real estate investors.
Whatever your learning style, it’s crucial to immerse yourself in the world of real estate investing before putting your money on the line. The members of the Austin Real Estate Networking Club are ready to help you get started. You can sign up for free to attend your first meeting and training of the Austin Real Estate Networking Club here.