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What a Good Real-Estate Investment Deal Looks Like in West Texas

Updated: Oct 17, 2022


Finding good West Texas real estate deals is essential to the life of a real estate investor. It’s how they make money, but if you’re brand new to real estate investing it can be very overwhelming to understand what a good real estate investing deal looks like. The real estate market is very hot right now and people are absolutely paying over asking price for real estate property, so it can be difficult to figure out what a good deal looks like for a new real estate investor.


Today, I’m going to go over 3 tips you need to know to get into real estate investing.

Tip number 1. You need to talk to a real estate agent that specializes in real estate investing like me. Ask them to tell you what their last real estate investment deal was like. You want to know what the property was purchased for, what market it was in, what area it was in, what city it was in, how much money was put into home renovations, what’d the property sold for, was it turned into a rental property, and if so, what was it rented for. When you ask these questions, you’ll start to find that people love talking about their real estate investment deals. I love talking about my deals, and people ask me about them all the time. When you talk to real estate agents that specialize in investing, you’re doing 2 things. First, you’re starting to gain the real estate investment information that you’re looking for, where these investment deals are occurring, what the purchase price is for these investment deals, how these investment deals are being found, how much money is being put into these investment properties after the purchase, how much these investment properties are being rented for, and how much these investment properties are being sold for. This is valuable information that you need to remember, so you can start to go and look for real estate investment deals. The 2nd thing that you’re doing, is you’re building rapport with the real estate agent that specializes in real estate investing, and who’s actively doing real estate investment deals. That’s huge, because now you’ve got somebody who you know you can take a deal to and they can help you determine if it’s a good deal or not, they’ll also be able to get you in contact with other real estate investors, who you can partner with on real estate deals. This gives something of real value that will get you going and really catapult your real estate investing business.


Tip number 2. This one is going to involve you getting your hands dirty. You can go and look for yourself at what people are paying for properties online. You can use several online property websites that allow you to use filters when searching for properties so you can see only homes in specific neighborhoods, what the homes in these neighborhoods sold for during the last 3 months, last 6 months, the last year or 2 years. This will allow you to see the price ranges that homes in the areas that you are interested in sold for, so you will know what you’re going to pay for your investment properties. You can then contact your real estate agent that specializes in real estate investing and they find all of the homes that are rented in the area that you’re interested in, and find out what the homes are being rented out for. This will tell you how much money renter’s are willing to pay for rent in the area, which you definitely need to know. Your real estate agent can also get the 2 of you in contact with the real estate investors that own those rental properties, so the 2 of you can find out how much money was invested into the home after the purchase and if they have sold any homes in the area, how much money they typically make on their investments. All of these things will give you a better idea of what a good real estate investment deal looks like.


Tip number 3. You need to know the 70% Rule and the 1% rule. The 70% rule states that you need to buy a property at 70% of its market value, minus repairs. If you buy a property and the value of the property after it’s fixed up is 100,000 dollars, then the 70% rule says, you can’t pay more than 70,000 dollars for that house. Now, if the house needs 20,000 dollar’s-worth of repairs, that means another 20,000 dollars has to be subtracted, which gives you a purchase price of 50,000 dollars. The 1% rule states that the rent that you’re going to charge for the investment property needs to equal 1% of your purchase price. So, if your purchase price 70,000 and you’re going to charge 1,000 dollars a month for rent, then the rent is higher than 1% of purchase price. Anything above 1% of the purchase price is most likely above break even, so you know you’re making money on your investment.


These are 3 important tips for understanding real estate investing, but the best tip I can give you is to consult with a real estate agent that specializes in real estate investing like me. These agents work full-time in real estate and are experts in their real estate markets, so they can best tell you all the information you need to know to be successful in real estate investing. If you have questions about real estate investing or would just like to learn more about real estate investing, please give me a call and we can set-up a meeting. I’m an expert in West Texas Real Estate and I’m connected to expert Real Estate Agents all over the United States, so whether you’re seeking real estate in Lubbock, Texas, or in Derry, New Hampshire, I can help you.


NOTE - If you’re planning on selling and are in the market for a top agent to make it happen, I would love to help!


We provide real estate services to these West Texas cities - Abernathy, Brownfield, Buffalo Springs, Crosbyton, Denver City, Farwell, Floydada, Idalou, Hale Center, Lamesa, Levelland, Littlefield, Lubbock, Muleshoe, New Deal, New Home, Olton, Plains, Plainview, Post, Ralls, Ransom Canyon, Seagraves, Seminole, Shallowater, Spur, Sudan, Sundown, Tahoka, Tulia and Wolfforth.


We provide real estate services to these counties - Bailey County, Briscoe County, Castro County, Crosby County, Dawson County, Dickens County, Floyd County, Gaines County, Garza County, Hale County, Hockley County, Kent County, Lamb County, Lubbock County, Lynn County, Parmer County, Scurry County, Swisher County, Terry County and Yoakum County.


-Turn the Key to your clean Slate-


Lainie Eilenberger, REALTOR

Key and Slate Real Estate Group

Keller Williams Realty

806-928-4453

Licensed Realtor in Texas


With Gratitude,

Lainie Eilenberger, REALTOR

Key and Slate Real Estate Group

Keller Williams Realty

Licensed in Texas

806-928-4453



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