All Forum Posts by: Daniel Mina

Hey All,

I have a question about prepayment on conventional loans. The mortgage loans I'm currently after all state "no prepayment penalty." Say I am a few years into my mortgage and I believe I can pay a little extra on top of my normal monthly payment. If I make my normal payment of say $1500 on the normal due date of the 1st of the month and I decide to pay an extra $1000, this means that $1000 should all go to principal correct? Of course this is assuming no sneaky unpaid interest clause is in the loan despite a "no prepayment penalty" statement.

My second question is this:

If I make my normal payment of $1500 on the 1st and I decide to pay $1000 on the 15th of the same month, the lender would bill for interest in arrears (interest accrued from the 1st-15th) before directing the rest of the $1000 to principal right?

I just want to make sure I am understanding this concept of arrears correctly and to make sure that this is normal when "no prepayment penalty" is stated. 

Thanks in advance,

Daniel

Hello All,

I'm looking for real estate broker/agent referrals in the Plano/Mckinney/Frisco, TX area. Investing experience, 5+ years a plus. 

Thanks in advance

Bump. Anyone have a good recommendation for a title search book or free online video/course?

MMEX got their permit today....

 Thanks Brad. I have been eyeing Celina and I did analyze the four plex you mentioned. I kind of disregarded it because it looked fully renovated and not something i could add value to. Am I approaching it wrong by thinking this way since it isn't a 5+ MFU? THe square footage for the seprate units was also smaller than what I need to move my family into, but I'm watching it. Celina is on my radar. I haven't thought of loop net for smaller multis but I will now with your advice. Thanks!

 Hey Greg thanks for the response. I'm actually planning to attend an event with LU this weekend! I've spent my first month reading a bunch of books like Frank Gallineli's Cash Flow and Nolo's Landlord guide. I figured I'd learn some terminology before I start networking without knowing what I'm doing. Thanks for the tip though as it assures me about my decision. I need mentors alongside my passion for book reading/study, but I'm not looking for costly gurus, so it sounds like LU is for me.

I really appreciate that advice Bart. That is definitely something that I am struggling with (weighing a home where I want to live vs. making the math work). I know I may not cash flow living in one of the units and may even be in negative cash flow, but I'm not forgetting to factor in money saved from paying rent to live elsewhere. I'm trying to make it so it cash flows if I decide to move sometime after the required 1 year. To be honest, I may even consider adding property management while I live in it and am in negative cash flow, as my wife and I can make more with our jobs than spending time managing (opportunity cost is something I'm struggling with too). My decision will certainly come down to the balance of my contentment to live there and the math working out. Which way it the scale leans will certainly have an impact on my longer term strategy with the property.  If I sacrificed some math for better livability, my exit strategy would be to live there with the intent to sell in the future . If I sacrificed some livability for better math, my exit strategy would be to do it again.

Hey All,

I'm looking for the best way to find a small multi-family in the North of Dallas, TX area (Richardson, Garland, McKinney, Frisco, Princeton, Melissa, Allen, Plano, Murphy, Irving, Wylie, Sachse) to move my family into while house hacking. Ideally, I want to use an FHA loan and be able to add some value after rehab. My wife and I have decent capital and we could go for other financing, although our options are limited as we do not currently own a home to tap into. I've enlisted the help of an agent. Does anyone have advice on good strategies in this market to find small multifamily besides going through MLS listings with the help of an agent? Any input on what to look for when it comes to numbers would be helpful (I am still getting an idea of the different market ARVs, rent-value%, cap rates, etc., although small multifamily seems to be more challenging to comp than SF). Any advice/direction is appreciated.

I'm not from the area but here's what I think/know.

I think asking people there might get you a biased answer.

Here's what I gathered:

MMEX just bought some land so it's a good first step. It doesn't mean you shouldn't stop being a little cautious because they need some serious financing for their plans to take off (market analysts don't like the books with MMEX as they have a lot of debt; stock price $0.01.)

 Investing in the area is a good idea depending on your goals. Short term- if it cash flows and you aren't worried about a little longer vacancy at first, I think go for it. Trump and Cruz probably want it to happen sooner rather than later. Long term- it will likely pay off big at some point (There's oil there right?). It's just a matter of when (consider that this would be the first new US refinery in 40 years).

Hey BP community!

I'm new to RE investing and have been perusing BP for some time now...learning a lot to soon take some action on this great information. I really enjoy this website.

 Some things about myself: I currently working as a full time pharmacist in home infusion, I enjoy boxing and mma, and I live near Dallas, TX.

My first real estate goal is to get my family into a duplex/triplex/fourplex as my first home while home hacking (anywhere in the Plano/Murphy/Wylie, TX area ....anyone have advice on how doable this is?). After that I just plan to adapt to the markets I target in regards to investing strategies, and get the ball rolling on proper cash flow.

Glad to be a part of this community now!

Daniel