All Forum Posts by: Darnell Lockett
Darnell Lockett has started 4 posts and replied 159 times.
Post: I'm trying to buy an apartment complex without having millions
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Hi @Zach Jones. Great question. Coming from a Commercial Mortgage Broker perspective, I often see investors in similar positions bring in sponsors to help solidify the deal. The sponsor would bring credibility and experience to the project, based on the specific apartment complex acquisition. They might also provide additional capital as needed to cover DP, closing costs, and CAPEX if it's a value add. As for credit score requirements, your score is taken into consideration. The focus is often however on the subject property and how it's currently performing (debt service coverage ratio and cashflow wise) or has the potential to perform in the future.
Darnell Lockett
Post: Searching for Niche Loan Products
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Dan Bitner:
Thanks @Darnell Lockett, I wasn't tracking that as a metric so appreciate you pointing that out!
You're welcome @Dan Bitner.
Post: Questions For A Commercial Lender in Texas
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Hi. What questions do you have @Tucker Bousquet? I'd love to connect.
Post: Searching for Niche Loan Products
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Dan Bitner:
@Matt K., I think it makes it tougher, but not impossible. If the property's occupied units are already at or near market value you have a chance. Certainly, if you live it in for a year and then vacate, you can list it at market value. Example: https://www.redfin.com/CA/San-... the occupied 2 bed is at $3200/month and you can probably get $3500 for the second unit. Rent control would be a 2-3% up charge per year so an extra $100/unit/month. Depending on downpayment & purchase price, you could still get some modest cash flow (or at least I hope so)
Keep mind if you were to go with FHA on a 3-4 unit multi-family purchase, the subject property has to pass the self-sufficiency test. 75% of the total market rent (aka pro forma) for all the units has to be more than the total monthly mortgage payment. That total payment includes: principal, interest, taxes, mortgage insurance (PMI) and any other insurance (like homeowners insurance). If this metric isn't met…you can't use FHA to purchase the property.
Post: Facebook "Private Lenders"
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Those numbers sound too good to be true!
Post: Where to buy fourplex?
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Nadine Hylton:
Topic: Best cities to buy a fourplex
I wanna purchase a fourplex and I’m open to buy in any city that’s profitable. My own city is a HCOL area, so not a lot of options here.
Since I’m late to the investing game, I wanna get the best bang for my buck as opposed to starting with a single with family homes.
I’m interested in the buy and hold and MTR models. Im open to either or both.
Based on your experience, what cities would you recommend researching and investing in?
Hi @Nadine Hylton. I’m a firm believer in starting at home in your own backyard, where you can have hands-on experience since it’s your first purchase. Btw…I see you’re in a Houston (my hometown). Definitely a HCOL, but I’m sure you can still find Class C multi-family. Buying at the right price is key.
Post: Advice on what type of loan would best fit
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
I'd encourage you to shop around @Max Hutchinson. Talk with different banks, lender and brokers. Since you want to pull equity out of your primary home, as others have suggested consider using a DSCR loan for the investment property purchase. As for taking out equity from your primary with that rate...you'd have to really think about which is more important to you. Staying at 2.9% (not likely to see that again ANYTIME soon or getting cash out. Of course if you have reserves elsewhere that could cover your down payment, that could be something to consider.
BlackSquire Mortgage
Post: How to get financing???
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Jamille Smith:
That would be greatly appreciated. PM me the details if she is willing.
Quote from @Darnell Lockett:
Hi @Jamille Smith. As you can see by the comments on your post, this is an excellent community to utilize. You’ve been given excellent advice to get you started on your journey towards the laundromat. I know a young lady who just became an owner operator of a laundromat facility in Indiana. If you’d like, I’ll reach out to her and ask if I can connect you both together. Maybe she can give you some pointers on her business plan and what she did to purchase her facility.
will do!
Post: Commercial loan for office space
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
I would suggest shopping around @Sly H.. There are many Banks, Commercial Lenders and Brokers who offer conventional and non-traditional loan options for commercial properties. Do your due diligence and get different LOCKED quotes. You may find some willing to go 20% LTV. However..it's hard to say without knowing more about the property.
Post: How to get financing???
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Hi @Jamille Smith. As you can see by the comments on your post, this is an excellent community to utilize. You’ve been given excellent advice to get you started on your journey towards the laundromat. I know a young lady who just became an owner operator of a laundromat facility in Indiana. If you’d like, I’ll reach out to her and ask if I can connect you both together. Maybe she can give you some pointers on her business plan and what she did to purchase her facility.