All Forum Posts by: Ben Harvey

Points would be a benefit if you were going to keep the property long term. I usually don't suggest it's a good idea to buy down unless you recoup the payment and begin to collect after it's been paid off. 

For example, at par rate, you cash flow $100 at no points to the rate, you could choose to buy-down the rate $4,000 in points and now your property cash flows $400. You're now cash flowing $300 more a month. Essentially if, you take the $4k buy-down divided by $300, it'll take you a little over 13 months to recoup that cost and now collect on your buy down. If you plan to keep it less than that 13, it makes no sense to go ahead and do it. 

As far as by passing, I'd look into what rate choices you have and if the buy-down is worth it. It's a little more up front, but it's greater cashflow in the long term. 

Quote from @Kal Wol:

Quote from @Ben Harvey:

Hey @Kal Wol - It seems you've got 2 questions going on here, just want to make sure I understand,  

1) has anyone used Redfin's pre-approval service? 

2) Do you need a pre-approval to make an offer?

Did I get that right? 

 Yes Sir!

 Awesome, I'd have to agree with some of the other posts on this chain. I can imagine you are going to get what you expect from the larger retail lenders like Rocket, etc. Probably automated service and not another person on the side of the phone. Personally, I like to know the face and that there is someone I am working with on the other line, that's why I usually suggest and work with local lenders or brokers. 

Pre-approvals are not "required" but just about every agent I know wants one for two reasons, to make sure you are serious about buying, and if you're looking to show the seller you're a legit buyer, you want to provide as much strength in your offer as possible. 

If you haven't tried already, I'd run a pre-approval by someone local in the backyard you're looking in. They sometimes also know really good agents who can help if you need it that are local to the area. 

This is an awesome way of doing business by calling the listing agent on behalf of the buyer! Hopefully it brings you more referrals from the agents you work with. 

Hey @Kal Wol - It seems you've got 2 questions going on here, just want to make sure I understand,  

1) has anyone used Redfin's pre-approval service? 

2) Do you need a pre-approval to make an offer?

Did I get that right? 

I've been using a great title company out of Mckinney, they've closed over 100 transactions for us! Let me know if you haven't found one yet. 

Quote from @Christian Lyday:

Hey Loreto, hit me up when you get into the DFW area. Starting out on my REI journey as well.

 Where are you at? 

Hey Loreto! 

What part of DFW are you moving to? I am in Mckinney, wholesaling all over north Dallas! 

Hope the move goes well, I did that drive from AZ overnight in13 hours with my 13 month old asleep in the backseat! HA 

Thanks Jordan, I'll connect with him! 

Absolutely, I definitely agree I need to interview the agents. I have found that a few that I talk to mostly sell owner occupied housing and don't "think" like an investor, which is what I am looking for. 

To be honest, I live in the Mckinney/Allen area and the barrier to entry is a bit higher than my capital will allow unless I get into some distressed off market properties, or negotiate a really good deal off the mls.  

Tyler has peaked my interest as a starting place because the demographic/work force seems to be a bit younger from what I have read, and UT is launching their medical school in the midtown district, which I think is going to bring in more population, business, etc. Also, the barrier to entry is a bit lower than where I am at currently. 

But, I am open to suggestions and insight! 

Hey BP! 

I'm looking to take the first step in my real estate investing career in Tyler market. I'd love to connect with any investor friendly agents, GC's, property mangers in the area. I currently live in north Dallas and want to network as much as I can to get my first deal in the coming months. 

Any additional advice about Tyler or people you think I should talk to would be helpful!