Dallas REIA - FAQ's

How do I become a real estate investor in Dallas?

Dallas real estate investors must become experts in their field regardless of how they start. This process includes intimately understanding the local market and learning local real estate laws.

Educate yourself by building a knowledge network of investors and specialists. It functions like a support group for everyone’s inquiries and development. Network building also allows you to partner with seasoned investors to potentially split the profits as you gain more experience.

Real estate-focused associations work great for meeting a broad group of people with vast real estate experience. You can start your search by signing up for our next free Dallas Real Estate Investment Association meeting HERE.

What is the difference between a real estate agent and a real estate investor?

Real estate agents require licenses and earn commission by advertising and selling houses to a wanting populace. Meanwhile, investors do not need a license. While investors also don’t make commission, they have more money-earning opportunities, such as house-flipping, wholesaling, “subject to’s,” rental cash flowing, and many others.

Real estate investors do not require a license and purchase or sell properties for themselves and their own benefit. They make their money from renting, selling, or flipping the properties they find. They work for themselves, while agents work for others.

Additionally, a real estate agent generally works for someone else. Investors bypass employee restrictions by being self-starters with tools to build their portfolios.

Do you need a license to become a real estate investor in Dallas?

While potentially beneficial, a real estate license is not necessary to become a real estate investor.

The education received from the licensing process can benefit potential investors, however, the process can be time-consuming and expensive. Most investors have built their success without a license.

Can I become a real estate investor with little or no money?

Having larger amounts of campital can certainly help real estate investors, but investments often happen with smaller budgets. Turnkey properties, rentals, and duplex investments have great potential for future growth. You can also associate with experienced investors or an investment management consultant for practical information.

The Dallas Real Estate Investment Association provides a space for investors to communicate and grow their investments together. Consider attending one of our free meetings to learn more!

What is owner financing?

Owner financing—or seller financing—allows buyers to purchase a new home without relying on bank- mortgages. Instead, the seller replaces the mortgage by financing the purchase themselves. They usually require higher interest rates and may sometimes allow a balloon payment.

When you need to purchase or sell a property quickly, owner refinancing helps bypass lenders, appraisals, and inspections. This process reduces the sale time, which helps the property exchange hands faster.

What is real estate wholesaling?

Like owner financing, wholesaling exchanges properties quickly. In this scenario, an investor, or wholesaler negotiates a discounted sale price for the owner’s property. The owner then agrees to sell their property at a discounted price, signing the agreement into a contract.

The wholesaler then finds an investor willing to pay above the discounted price for the property instead of purchasing it themselves. When the investor buys the contract, the wholesaler receives the difference between the discount and the price the investor paid. For example, if a property wholesales for $85,000 and the investor pays $100,000, the wholesaler receives $15,000.

Is wholesaling real estate legal in Texas?

Wholesaling is mostly legal in Texas within defined stipulations. Dallas real estate investors should be aware that many laws surrounding wholesaling involve real estate license ownership. You should speak with experienced real estate investors to learn if and how you can start wholesaling.

Do I need a real estate license to flip houses in Dallas?

If your real estate investing plan includes flipping houses, you do not require a professional license to start the process. However, some experienced investors, flippers, and agents attest that knowing property legalities becomes easier with education, be it from the licensing process or networking with other investors.

With a dedicated resource team at your side, you can gain the necessary knowledge without a real estate license. You can also partner with a licensed agent instead of doing it yourself. Regardless of your licensing decision, establishing connections benefits your flipping endeavors.

What is a “subject to” deal in real estate?

In real estate investing, a “subject to” deal essentially transfers the payment responsibility of a current mortgage. The new buyer does not get a new loan to buy the home, instead paying the remaining balance for the mortgage on the house. This process is not a formal assumption of a loan.

Are “subject to” deals legal in Dallas, Texas?

While technically legal, Dallas real estate investors must be careful. The seller incurs a high amount of risk with “subject to” deals because the loan owner does not change. While the buyer now supposes property ownership, the seller keeps the mortgage payment liability.

If the buyer ever forgets or refuses to pay, the seller still retains responsibility for mortgage payments. Additionally, the lender has not formally approved the transaction. If the lender discovers the title transfer, they may accelerate the due date or demand full payment earlier than planned.

Some Texas lawyers do not advise using “subject to” deals because of their complications despite the legality, but there are ways to do it creatively as an experienced investor.

Where can I go to learn to become a real estate investor in Dallas?

To learn the most prominent details about investing in Dallas, you should network with experienced Dallas real estate investors. Their expertise can go a long way in your education process to help you make better decisions.

Sign up today for a free first meeting and training at the Dallas Real Estate Investment Association!