Real estate investment guide

Quick Guide to Investing in Real Estate in Texas

By: Real Estate Investing Learning Center

Investing in real estate in Texas is a great opportunity due to its constant population growth, strong economy, diverse markets, and business-friendly climate. Texas offers everything from single-family homes to ranches, commercial properties, and multifamily housing. If you’re just starting, this guide will help you take your first steps in a safe and structured way.

1. Use the Official State Contract (TREC Contract)

Always start with the official contract issued by the State of Texas, known as the TREC Contract (Texas Real Estate Commission Contract). This contract protects all parties and is legally recognized.

🔗 View TREC Contract

2. Check the County Appraisal District (CAD)

Before making an offer, check the website of the County Appraisal District where the property is located. This gives you access to public information such as estimated value, taxes, property history, and property characteristics.

🔗 Search on Google «[County Name] CAD» example https://hcad.org/

3. Check the Flood Map

Confirm whether the property is located in a flood zone using FEMA’s site or other local tools. This information is critical for insurance and assessing potential risks.

FEMA Flood Map

4. Do your do diligence & Evaluate the profilability

Analyze if the property is a good investment. Estimate your return, compare area prices, and consider repair and maintenance costs.

5. Perform a Comparative Market Analysis (CMA)

Before moving forward, conduct a Comparative Market Analysis (CMA). This will help you determine whether the price you’re paying aligns with other similar properties sold in the area. 🔗 You can request this from a Realtor or use tools like Zillow or Redfin.

6. Estimate Repairs and Create a Budget

Do a preliminary or visual inspection and estimate the cost of repairs. This is key for making offer decisions, determining profit margins, and defining your strategy (rental or resale).

7. Contract to Title Company

Send the signed contract to a trusted title company. They will review the legal history of the property and prepare documents for closing.

Texas Land Title Association to find authorized title companies.

8. Wait for the Title Commitment

The company will issue a Title Commitment, which is a preliminary commitment showing whether there are any legal issues, liens, or restrictions that could affect the purchase.

9. Close the Transaction

After all documents have been approved, the title company will inform you when & where will take place.