| 1. |
What loan-to-value ratio do you require? Answer |
| 2. |
What do I need to do to get qualified with BFA? Answer |
| 3. |
How long does it take to get qualified with BFA? Answer |
| 4. |
How long does it take to close a loan? Answer |
| 5. |
Does BFA require an appraisal? Answer |
| 6. |
What types of properties will BFA lend on? Answer |
| 7. |
Will you lend on "distressed" property? Answer |
| 8. |
Will you finance undeveloped lots or raw land? Answer |
| 9. |
Will you loan outside the Central Florida area? Answer |
| 10. |
Will you finance second mortgages? Answer |
| 11. |
What are your rates, terms and fees? Answer |
| 12. |
Can I use any title company? Answer |
| 13. |
Will you lend to corporations, partnerships, LLC's, trusts? Answer |
| 14. |
Do you have an attorney you recommend for Florida Land Trust? Answer |
| 15. |
Do you report your portfolio loans to the credit bureau? Answer |
| 16. |
Where is your office? What are your hours? Answer |
| 17. |
How much cash will I need to purchase an investment property? Answer |
| 18. |
What does my mortgage payment include? Answer |
| 19. |
What is the maximum loan amount that BFA will fund? Answer |
| 20. |
Will you lend on owner-occupied property? Answer |
| 21. |
Will you finance courthouse foreclosures? Answer |
| 22. |
Will BFA provide fixup money? Answer |
| 23. |
Are you a member of any real estate organizations? Answer |
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Q
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What loan-to-value ratio do you require? |
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A
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Barksdale Financial Associates LLC will fund up to the full purchase price (although "flip-fees" may be excluded) of your real estate investment property. It's a general assumption that our borrowers are purchasing property at 50% of the after repair value. |
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Q
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What do I need to do to get qualified with BFA? |
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A
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You need to submit a completed FNMA 1003 mortgage loan application form. You can find the 1003 here on our website and submit it online, if you wish. We also need to review a recent tri-merge credit report (we can pull the credit if you don't have a recent report) and we need to see verification of working capital. We are looking for good credit, stability in the area, and sufficient funds to rehab the property and service the loan. We have no fixed check list of requirements. All criteria are subjective, and all decisions are made by Sharon Lowe. |
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Q
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How long does it take to get qualified with BFA? |
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A
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It takes about 30 minutes for us to review your application, credit report and verification of working capital. |
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Q
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How long does it take to close a loan? |
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A
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Generally we can be ready to close two hours after we receive a title commitment, closing statement, and hazard insurance binder. |
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Q
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Does BFA require an appraisal? |
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A
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No, BFA does not require an appraisal. We usually fund up to the original, wholesale purchase price. |
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Q
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What types of properties will BFA lend on? |
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A
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BFA will lend on residential properties in Central Florida, with a primary focus on properties in Orange and Seminole counties. |
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Q
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Will you lend on "distressed" property? |
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A
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Absolutely. We lend on distressed properties all the time. That's our business. We are actually more interested in qualifying the borrower than in qualifying the property. |
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Q
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Will you finance undeveloped lots or raw land? |
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A
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Yes, but only for borrowers with whom we have extensive experience. |
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Q
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Will you loan outside the Central Florida area? |
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A
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We will go up to 50 miles in any direction from the Sanford/Longwood/Orlando area. Check with our office to be sure you are bidding in an area that we cover. We will be flexible with long-term established borrowers. |
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Q
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Will you finance second mortgages? |
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A
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Second mortgages may be considered for borrowers with whom we have extensive experience. |
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Q
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What are your rates, terms and fees? |
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A
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Our loans are 16% interest only. We charge two points, plus $500. Our term is 13 months. There is NO prepayment penalty, ever! We do not charge "junk" fees. Nor do we require an appraisal, survey or termite inspection. You will pay the usual closing costs which include title insurance, hazard insurance, doc stamps, intangible tax, recording fees, and pro-rated property taxes. |
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Q
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Can I use any title company? |
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A
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Yes, with very few exceptions, you can use any Central Florida title company you want. Sharon personally attends all closings, therefore a local title company is a must. We do not utilize title companies outside the Central Florida area to represent us. If you don't know a title company, we can recommend one for you. |
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Q
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Will you lend to corporations, partnerships, LLC's, trusts? |
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A
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Yes, to all. We strongly recommend Florida Land Trusts. |
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Q
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Do you have an attorney you recommend for Florida Land Trust? |
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A
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We recommend Joseph Seagle, real estate attorney, to act as Trustee and to prepare the trust documents. He is located at 924 West Colonial Drive, Orlando, FL 32804, and his phone number is 407-770-0100.
We also recommend Berry J. Walker, Jr., real estate attorney. His address is 1053 Maitland Center Commons Blvd., Suite 200, Maitland, FL 32751, and his phone number is 407-478-1866. |
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Q
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Do you report your portfolio loans to the credit bureau? |
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A
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No, we do not report indebtedness or payment history to the credit bureau. |
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Q
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Where is your office? What are your hours? |
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A
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Our office(s) are located in our homes. This is done to cut costs so that we can offer you the lowest fees. Working at home also means we are available whenever you need us. Our hours are 24/7/365! |
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Q
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How much cash will I need to purchase an investment property? |
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A
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The amount of cash that is necessary depends on a number of items. Generally speaking, though, you will need to supply:
Earnest Money: The deposit that is supplied when you make an offer on the house
Wholesaler Fees: If you are acquiring the property from a wholesaler, you are responsible for any costs over and above the wholesaler's costs in acquiring the property.
Closing Costs: Costs associated with processing paperwork to purchase or refinance a house.
Working Capital: You will need to verify working capital of a minimum of $25,000 per loan and/or 10% of the total amount financed, whichever is greater. |
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Q
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What does my mortgage payment include? |
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A
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The monthly mortgage payments include interest only to keep your payments as low as possible. Taxes and insurance are paid at closing. and the principal loan amount is due in a balloon payment at the end of the term. We do not escrow for taxes and insurance. |
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Q
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What is the maximum loan amount that BFA will fund? |
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A
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The maximum loan depends on the deal, the borrower, and our experience with the borrower. |
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Q
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Will you lend on owner-occupied property? |
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A
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No, we only lend to real estate investors who purchase property for a profit. No owner occupied loans, ever. |
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Q
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Will you finance courthouse foreclosures? |
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A
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Yes and no. Many of our borrowers purchase their investment deals at the courthouse foreclosure auction. Once they receive their certificate of title (after the waiting period), BFA will put a first mortgage on the property and the investor can cash out what they paid for the property. Now the investor has liquidity necessary to purchase another deal at the courthouse if desired. |
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Q
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Will BFA provide fixup money? |
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A
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BFA will provide fixup money depending on the borrower's strengths and our experience with the borrower. |
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Q
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Are you a member of any real estate organizations? |
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A
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Yes, BFA is a member of Central Florida Realty Investors and a member of and meeting sponsor for Investors Resource Center of Winter Park. |
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