All Forum Posts by: Darnell Lockett
Darnell Lockett has started 4 posts and replied 159 times.
Post: How to get financing???
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Hamp Lee III:
Welcome to BP!
Thanks for reaching out on the forums.
I would recommend a couple of things.
1. Contact your local chamber of commerce. They may have groups, businesses, or programs that can help. Networking is always good.
2. Check out the Small Business Administration. There are SBA programs and grants for women. Check out SCORE as well. They provide courses and mentorship opportunities.
3. Look for grants. As an African-American woman, there are grants for helping with business startup. Here’s an example of grants for women: https://www.nerdwallet.com/art...
4. Gain valuable and complimentary experience. Getting experience in this space might be helpful to building your knowledge base and helping get your first start.
5. Be ready for opportunities. Your networking may find someone that wants to sell one. Their costs and or may be such that you can get started.
6. Don’t despise the days of small beginnings. Your ending will not be your start. If you start small, be thankful. Where you are today…where you start…is just the beginning. Keep going.
There are programs to help you. You can build your own table. Keep knocking on doors. The right one will open.
I wish you all the best!
Post: FHA Loan Rules
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
To answer your question, you can have more than one FHA loan at a time. However, it's best to talk with your lender/mortgage broker directly so they can fully explain how FHA loans work.
Post: Brand New Single-family House a Good Investment?
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Hi @Matthew Phillips. It depends on what you're ultimately trying to do, AND if you can buy at the right price. Ultimately...the numbers must work for YOU. Run your analysis of the subject property and comps. Determine what rents are looking like and what you can possibly expect. Ultimately you have to do your homework to see if purchasing this property makes financial sense. BRRRR is a great strategy, but it's not the only strategy that works. Find what works best for you, and go for it!
Post: Personal Loans or LLC
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Kim Frantum:
Quote from @Darnell Lockett:
Quote from @Anna Beckerleg:
Most LLC's are not eligible for traditional residential mortgages. You could go with a commercial mortgage instead if you want to purchase with your LLC but that may not be the terms you want. You could always do a quit claim after you purchase to transfer ownership to your LLC but you'll want to confirm with your lender that is OK and won't contradict the wording in your mortgage agreement.
Hi @Anna Beckerleg. If Kim uses a DSCR loan she's able to close in a newly formed LLC right away. We do them all the time for our investor clients. No personal income needed and no personal debt take into account. They are great for 1-4 unit residential properties.
This is extremely helpful! I will reach out when I'm ready so we can talk about options. Much appreciated!
Post: Personal Loans or LLC
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Anna Beckerleg:
Most LLC's are not eligible for traditional residential mortgages. You could go with a commercial mortgage instead if you want to purchase with your LLC but that may not be the terms you want. You could always do a quit claim after you purchase to transfer ownership to your LLC but you'll want to confirm with your lender that is OK and won't contradict the wording in your mortgage agreement.
Hi @Anna Beckerleg. If Kim uses a DSCR loan she's able to close in a newly formed LLC right away. We do them all the time for our investor clients. No personal income needed and no personal debt take into account. They are great for 1-4 unit residential properties.
Post: Personal Loans or LLC
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
That's not true at all @Kim Frantum. New LLC's can get financing right away. I highly encourage you to not only talk with Banks, but Mortgage Lenders and Mortgage Brokerages as well. All have different experiences and services they can offer. We're a Commercial and Residential Mortgage Brokerage firm, but always encourage potential clients to shop us around. An informed investor is a buyer is a better client...imo! Today...banks, lenders and brokers all have some forms of investor loan programs they can offer..which don't take your personal income or debt into account (at least we have them anyway). You can hold as many investment properties as you want to in an LLC when you use these types of DSCR loan programs.
Post: Best commercial real estate book?
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Commercial Mortgages 101 "Everything You Need to Know to Create a Winning Loan Request Package". It's a good book if you want to get a perspective of what commercial mortgage lenders look for when deciding to approve a loan.
"The Commercial Guide to Developing Real Estate" is very good from a fundamental understanding of developing and executing CRE.
Post: Best loan for rehab and flip
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
There are quite a few loans available for fix and flips. There are lots of PML's that specialize in these loans.
Post: 25K Cash in Hand - What to do?
- Real Estate Consultant
- Miami
- Posts 165
- Votes 62
Quote from @Kristina Kuba:
If you received it from family, they can write a gift letter and/or as long as it came from somewhere and it can be sourced you can use it for a mortgage downpayment. I would double check with a seasoned and experienced mortgage broker. DM and I can connect you.
If you are looking to buy and build wealth, have you considered a FHA on a multi family?
If I could do it all over again and not have a spouse and dogs, etc. I would use my FHA loan for a 4 unit building. It is more difficult to house hack later in life if you have a larger family, so keep that in mind.
For example, in Hillsborough an FHA loan can finance up to $809,150 for 4 living-units. That is only 28,000 plus closing costs, very close to your 25k savings. Tampa, the main seat of Hillsborough county, has seen a cool off just like the rest of the country and getting a 4 unit in that price range is attainable.
I know you are in Clearwater but I am I am bullish on Tampa because of Bill Gates multi billion dollar investment into downtown Water Street and the GasWorxx projects, both are transforming large swaths of the downtown and the urban core.
Feel free to reach out with any questions!
Excellent comment. One thing to keep in mind when trying to use FHA to purchase multifamily property, is the property must pass the self-sufficiency test, otherwise the property won't qualify.
75% of the total market rent (aka pro forma) for all the units has to be more than the total monthly mortgage payment. If this metric isn’t met…the borrower can’t use FHA to purchase the property. Here in Miami where we are (and in most of South FL), it's pretty hard to meet that standard. As the Principal Mortgage Broker/Owner of BlackSquire Mortgage, I often remind our loan officer's to tell our clients about this. As for gift funds, it depends on which family member the funds came from. Seasoning requirements for cash deposits vary based on the type of loan.