Wholesaling real estate in Texas: the rules, the markets and the math
Texas is one of the most active wholesaling states in the country. It has about 30 million residents, a median home value near $284,000 in recent Census estimates, fast-growing metros and a large supply of older homes that need work. Advertisers bid nearly $47 per click on we buy houses Houston, a sign of how competitive the direct-to-seller market has become.
Texas also has specific rules for people who market a contract rather than a property they own, and the Texas Real Estate Commission has addressed wholesaling in its guidance. This guide explains those rules in general terms, compares the major metros, walks through wholesale math and shows where off-market leads come from. It is general information, not legal advice.
What Texas wholesalers need to know about the law
Texas law and TREC guidance shape how wholesalers can market contracts. Rules can change, so confirm current requirements with a Texas real estate attorney. Wholesalers who keep copies of every disclosure, contract and assignment, and who use a title company familiar with assignments, protect themselves if a deal is later questioned.
Equitable interest disclosure
Texas law generally requires a person who sells or markets an interest in a contract, rather than the property itself, to disclose in writing that they own only an equitable interest and not legal title.
- Equitable interest
- Written disclosure
Disclose clearly to every potential buyer.
Acting as a principal, not a broker
Wholesalers who market their own contract interest are generally treated differently from people who negotiate sales for others. Activity that looks like brokering another person’s property can require a real estate license.
- TREC
- License rules
Market your contract, not someone else’s home.
Fast non-judicial sales
Most Texas mortgage foreclosures are non-judicial, with sales usually held on the first Tuesday of the month after required notice. Preforeclosure timelines can be short.
- First Tuesday
- Short timelines
Reach owners as soon as notices appear.
Fair dealing with sellers
Explain your role, disclose that you may assign the contract, share comparable sales and encourage sellers to get independent advice. Federal and Texas rules govern calls and texts, so scrub numbers, get consent where required and honor every opt-out.
Fair dealing protects sellers and your reputation.
Questions to ask a Texas seller
- 1Why are you thinking of selling?
- 2Is there a mortgage, and are payments current?
- 3Has a foreclosure notice been posted?
- 4What repairs does the home need?
- 5Who needs to sign?
- 6What do you need to walk away with?
What Texas sellers and wholesalers search for
We buy houses Houston draws about 1,000 searches a month at about $47 per click, and cash home buyers Texas about 320 at about $40. Nationally, wholesaling real estate draws about 4,400.
Paid competition is intense
High click costs mean many wholesalers compete for the same online sellers.
Few search for wholesale houses directly
Wholesale houses in Houston, Dallas and San Antonio each draw about 20 searches a month.
Legal questions are common
How to wholesale real estate in Texas draws about 40 searches a month and is wholesaling legal in Texas about 20.
- 1Wholesaling real estate (US)About 4,400
- 2We buy houses HoustonAbout 1,000
- 3Cash home buyers TexasAbout 320
- 4How to wholesale real estate in TexasAbout 40
- 5Wholesale houses HoustonAbout 20
- 6Wholesale houses DallasAbout 20
- 7Wholesale houses San AntonioAbout 20
- 8Is wholesaling legal in TexasAbout 20
Why public-record leads matter
Ways to compete without bidding wars:
Search volumes and costs are approximate. Figures are recent monthly estimates and change over time. Use them to understand interest, not as exact counts.
ForeclosuresDaily.com hosts monthly webinars with investors such as Carolynn Castillo, who share how they find and evaluate deals.
Texas in numbers
Texas has about 30.2 million residents, a median home value near $284,000 and a median household income around $78,000 in recent Census estimates, with about 63% of homes owner-occupied, about 67% single-unit homes and vacancy near 9%.
Population growth keeps demand high in Houston, Dallas-Fort Worth, San Antonio and Austin.
Older neighborhoods in every metro have homes that need repairs, which suits cash buyers.
Texas has no state income tax but relatively high property taxes, which can push some owners to sell.
Property insurance costs have risen, especially along the Gulf Coast.
- Act like a broker without a license
- Promise a price
- Cold-call without scrubbing
- Market your contract interest
- Show recent sales
- Follow call and text rules
Related resources
Texas wholesale math: from ARV to assignment fee
Work backward from what a cash buyer will pay. Many buyers use a rule of thumb such as 70% of after-repair value minus repairs, though criteria vary by market and property.
Assignment fee = Cash buyer’s price − Your contract price with the seller
All figures are illustrative. Buyer criteria and local costs vary.
Property taxes and insurance matter. Texas buyers factor high tax rates and rising insurance into what they will pay, so check both before you set your contract price.
Repairs drive the number
Get real bids, not guesses.
Buyers set the ceiling
Know what your buyers will pay.
Timelines can be short
Foreclosure sales move quickly.
Track your results
Measure cost per deal by lead type.
Texas metro counties for wholesalers
Recent Census estimates show how prices and ownership differ across major Texas counties.
Travis County (Austin)
A median value near $523,000 and about 52% owner-occupied. Higher prices mean larger spreads but fewer distressed homes.
Tarrant County (Fort Worth)
A median near $324,000 and about 59% owner-occupied, with steady investor demand.
Dallas County
A median near $303,000 and about 51% owner-occupied, with many older homes and rentals.
Harris County (Houston)
A median near $277,000 and about 55% owner-occupied, with the largest volume of deals and flood considerations.
Bexar County (San Antonio)
A median near $262,000 and about 59% owner-occupied, with lower prices and many single-family rentals.
Statewide
A median near $284,000 and about 63% owner-occupied, with strong demand in fast-growing suburbs.
Figures are recent Census estimates. Use local comparable sales to set every offer.
How to build a Texas wholesaling pipeline
- 1
Pick a metro and lead types
Choose one market and two or three lead types, such as probate and preforeclosure, and learn the neighborhoods your buyers want.
- 2
Research before you reach out
Confirm ownership, liens, flood history and foreclosure status so your first contact is informed.
- 3
Follow up within the rules
Use mail, door knocking and compliant calls and texts. Scrub numbers against do-not-call lists, get consent where required and honor every opt-out.
Checklist
- Verify ownership
- Check foreclosure notices
- Estimate repairs
- Confirm payoff and liens
- Prepare written disclosures
- Get legal advice
See also probate wholesale investments and probate leads in San Antonio.
What our customers say
Real investors share their experience with ForeclosuresDaily.com in short video reviews and press releases.
Wholesaling real estate in Texas: FAQ
Short general answers. This is not legal advice. Tap a question to open it.
QIs wholesaling legal in Texas?Yes
Generally yes, with disclosure rules for people who market contract interests.
QWhat must I disclose?
Generally, that you hold only an equitable interest, not legal title.
QDo I need a license?
Not for marketing your own contract interest, but brokering others’ property can require one.
QHow fast are Texas foreclosures?Yes
Often fast. Sales are usually held on the first Tuesday of the month.
QWhich metro has the highest prices?
Austin, in Travis County, at a median near $523,000.
QWhere do off-market leads come from?
Public records such as probate, preforeclosure and eviction filings.
Want Texas wholesaling leads? Tell us your target counties and we will help you choose seller leads.
Find Texas deals without bidding wars
Texas wholesalers who disclose clearly, run honest numbers and work public-record leads find sellers that paid ads miss.
ForeclosuresDaily.com supplies probate, preforeclosure, eviction and absentee owner leads across Texas. Explore our lead products.