All Forum Posts by: Darnell Lockett

Hi @Robert Rose. Congrats on your first project. I'll echo what @Robb Almy said as it pertains to having the right LOCAL team in place, especially considering its your first project. That's a must! Things like feasibility studies, site surveys and site selection will play a part in the success of the project. Having a strong experienced team is critical. 

Hi @Barrington Smith. I know this post is a few months old, but did you go through with the purchase? I'd love to know. On the surface this looks like a good deal. Btw...I'm here in Miami if you ever need someone to help you look at your deals. I don't mind. 

 Thanks for the reply and info. I'll have to check them out. 

Hi @Tom Ac. I 2nd what @Jace Perry said. You don't need a CRE broker but you definitely want an attorney that specializes in CRE sales contracts or leasing law.....should you decide to go that route.

Hi @Walter Jones. From a lenders perspective, a few things I have potential clients take into consideration are: 1. Do they have experience running/owning a small hotel? 2. Do they have a sponsor (experienced in hotel operations) if they don't have experience? What's the condition of the property? 3. Will there be any upgrades? If so, what's the projected costs per room/unit? 4. Will the current owner/operator remain in place, or will they bring someone new in? A 26 room hotel seems too small to have a property manager. PM expenses will really cut into profits for a hotel of this size. That's where the borrowers experience would come into play...imo.  

I have no desire to define what an "investor" is or isn't, but I certainly agree that wholesalers should be transparent with whoever they are dealing with. Whether it's the homeowner, RE agent or end buyer, the phrase "I'm a wholesaler" should probably be used so there is no confusion about their role in any transaction. If you're wholesaling, be proud enough to say you're a Wholesaler!  

Good to know. Will do for sure @Bob Stevens. We love value add. 

 Good question @Ali Nichols. That's something many investors don't take into account. We look for those investors with some type of experience with 5+ units as far as having owned or even managed them currently or in the past, when we're underwriting. Owning a 3-4 unit can help with experience requirements as well. Experience is paramount, especially here in Miami. Commercial is very competitive. Its less complicated underwriting a 3-4 unit property especially if we go the DSCR loan route with our investor buyers. No experience or personal income documentation needed, and much faster closings.

@Bob Stevens Yes from what I hear, NYC is quite expensive. I'm down in Miami and it's very expensive here as well, so I do understand that aspect. If I may ask...what types of properties do you buy? We focus mainly on MF in the WPB/Fort Pierce/Port St. Lucie areas where it's a little more affordable. 

Hi @Eliyahu B Jacobs. I see you're here in Miami as well. I'd suggest looking on websites like crexi and loopnet. I'd also talk with a local Real Estate agent that specializes in commercial real estate, and is also an investor. They will have data on 5+ units that are listed for sale. They may also know about some off market deals. Feel free to reach out to me if you'd like a recommendation for a few local Commercial RE agents that I know.