Question 1

Do I need a real estate license to wholesale in Tyler?

Accepted Answer

Not if you stay inside the safe harbor in Texas Occupations Code section 1101.0045. That statute lets you acquire an option or an interest in a contract to purchase real property and then sell the option or assign the contract without a license, on two conditions: you don't use the contract to engage in real estate brokerage, and you disclose the nature of your equitable interest in writing. Since SB 1577 took effect on January 1, 2024, that written disclosure has to go to both sides of the deal, the seller and any potential buyer, not just the buyer as under the original 2017 version. This is Texas law, not a Smith County rule, and it applies the same way in Tyler as anywhere else in the state. We're a lender, not your counsel, so have a Texas real estate attorney review your contract and disclosure language before you use them.

Question 2

Assignment or double close: which one does transactional funding cover?

Accepted Answer

We fund the double close. Section 1101.0045 covers assignments: you sell the option or assign the contract, with the equitable-interest disclosure in writing to seller and buyer. A double close is a different structure, two separate purchase-and-sale transactions, A to B and then B to C, used when a contract is non-assignable or when the wholesaler would rather the end buyer not see the A-to-B price. Our transactional funding covers the first leg and is repaid out of the simultaneous resale. No Texas statute prohibiting double closings was located, but which structure fits a given contract is a legal question for your attorney, not a lending one.

Question 3

Why do severed mineral estates matter on a Smith County double close?

Accepted Answer

Because the East Texas Oilfield reaches into southeastern Smith County, and Texas law makes the mineral estate dominant over the surface. Where a prior owner severed and kept the minerals, that reservation stays in the chain of title, and it can surface as a Schedule B exception on the title commitment late enough to complicate a same-day double close if nobody catches it early. Texas has a fix for it: a Minerals and Surface Damage Endorsement, form T-19.2, costs $50 on an owner's policy and nothing on a loan policy under the Texas Department of Insurance's promulgated Rate Rule R-29.1. There's no sourced figure for how many Smith County parcels actually carry a severed mineral estate, so the honest instruction is to read the title commitment's mineral exception on every Tyler-area contract, not to assume it applies or that it doesn't.

Question 4

How does Texas' foreclosure calendar affect distressed deal flow around Tyler?

Accepted Answer

Texas forecloses without going to court, and the sales happen on one fixed day a month at the county courthouse. Under Texas Property Code section 51.002, sales are held on the first Tuesday of each month between 10 a.m. and 4 p.m., moving to the first Wednesday when that Tuesday falls on January 1 or July 4, at the courthouse of the county where the property sits, unless the commissioners court has designated another nearby public location. Notice has to be posted, filed with the county, and mailed certified at least 21 days before the sale. That 21-day window is the lead time to line up an end buyer and have transactional funding in place against a date that doesn't move. This is the statewide process, not a Smith County-specific practice; we found no sourced detail on Smith County's exact designated sale location.

Question 5

Does closing twice in one day double my title cost on a Tyler wholesale deal?

Accepted Answer

You pay two owner's policies, but neither price is negotiable and neither is a shopping decision. Texas title insurance rates are promulgated by the Texas Department of Insurance under Insurance Code section 2703.151, so the premium on a given policy amount is the same at every title company in the state, in Smith County or anywhere else. The Commissioner cut those rates 6.2% effective March 1, 2026. On the current schedule TDI's own worked example puts a $268,500 policy at $1,612. Texas also has no real estate transfer tax, and the constitution bars the Legislature from enacting one, so a same-day second closing triggers no state transfer levy. Since price is fixed, shop title on service, on whether the office will run a double close in a day, and on whether they'll write the mineral endorsement discussed above.

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