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All Forum Posts by: Preston Dean

Preston Dean has started 20 posts and replied 679 times.

Post: Am I Being Ripped Off By My Lender? (First time buyer)

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Gary, Im so very sorry your mortgage broker forgot this huge part of the transaction. How do you know you are supposed to ask about something that you don't even know is a thing (Closing Costs). Your mortgage lender probably assumed you already knew about this. When someone (myself included) is in the business for a while they sometimes forget to take a step back and lay out all the small details for their clients & forget to mention all the things that they might think needs to be mentioned. 

If I were you, I would not chose a different lender at this point, unless they can get you a cheaper rate. I am sure you already have but I would sternly let your loan officer know that this is a huge detail that they missed but help refine their craft by giving them constructive criticism. 

Mistakes happen and I am sure your loan officer is more tore up about it than you are because their reputation and your business is on the line. 

Sorry this happened to you!

Post: Preparing to buy my first property

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hi Seth,

What question specifically did you have?

Post: Wholesaling a tear down house

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hi Will,

I can get you connected with my wholesaler here in Fort Worth, TX & he will be able to give you some insight on what they do.

Post: Advice on buying 2nd home & renting the 1st

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hey Maria,

My wife and I just went through this same thing!

It sounds like you are wanting to put 20% down to avoid PMI? Maybe? We were shocked to see that PMI was only $56/month, this helped us make our decision. I would be curious to know what PMI would be on the property you are looking into.

Also regarding the 7%+ interest rates - ask the seller to contribute money towards rate buy down and just wrap it in the mortgage so its a win win

Example, asking price is $400K. Maybe think of offering $410K with a $10K seller concession and use THE ENTIRE seller concession to buy down the interest rate.

Regarding the equity, leave it in the house I would not touch it. 

It sounds like you have a very sizable down payment, keep us updated on what you decide to do!

Post: Best Brokers to join as a real estate investor/Wholesaler

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Man, this can be a tricky/touchy subject with brokers. Every broker is different and some won't allow you to wholesale but I doubt any brokerage will prohibit you from investing. 

If I were you I would call around to some brokerage's and express your interest in hanging your license with them and seen how they respond to the question "Can I wholesale if I am brokered here?"

Small brokerages will probably be more okay with it than larger ones. I know an agent in Fort Worth who is doing that exact same thing.

Post: Final cost of a two-story wood frame building

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

In Fort Worth, Texas the average cost to build is about $180-$195/ SQFT 

Post: Real Estate Protocol!

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

The seller can back out of the contract just as a buyer can but there will always be consequences, finding out who he is UC with and what stage of the contract they are in is going to be important 

Is the prop owner is UC with a realtor are they already past option/inspection period? If so the seller will have to refund EMD & potentially option fee

it sounds like you need to gather some more details though

Post: How to find comps for properties w/ADU

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hey Nicholas, 

Typically a realtor will be able to help run comps for you with a back ADU. At least in Texas, and the MLS I have access to I can do that.

The only down side is that appraisers most likely will not consider the ADU into the property value if the main house/lot is zoned as a SF vs MULTI.

We ran into this issue here in Fort Worth & my client purchased a property with a back ADU but the appraiser would not count the ADU as part of the property value. He gave it the same value as a back shed.

Reason being is because the lot was zoned for single family use and having the back ADU made it a multi family use.

So be aware of that!

Post: How to start

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hey Ana!

First off I LOVE that at 18 years old you are on the forums asking for advice on how to buy your first property! Very wise of you.

Without some kind of proven work history its going to be pretty tough for a lender to approve you for a FHA/conventional loan. My suggestion to you would be to have a parent/guardian/grand parent co-sign with you so that you can get that approval.

second, I would suggest a duplex or a single family with a back apartment. That way you can have your space and your tenants can have their space but you still make some passive income 

third, would be to buy a property under value and add some sweat equity into it by either adding sqft or just basic paint & new everything. 

Your credit plays a part in all of this when it comes to the interest rate you get. Higher credit score you have the lower interest rate you will typically get. 

Hope that helps!

Post: New to Wholesale

Preston Dean
Posted
  • Realtor
  • Fort Worth, TX
  • Posts 703
  • Votes 336

Hey Benjamin, I can connect you with my business partner who is a wholesaler here in the Dallas Fort Worth area. I'll send you a connection request