All Forum Posts by: Salvatore Lentini

Can someone from Lima One reach out to me?  I'm selling a property and you're the lender.  I already agreed to one extension and that ends today.  I need to decide if I should agree to another extension.  You received the appraisal report weeks ago.  I don't want to air dirty laundry on here but a status update would be nice.  Title has no info, my Realtor can't get info....Please message me, someone.

We've all listened to gurus when we got started mainly because they are the loud barking dogs on the internet and whose content you were most likely to come across first.  They each have one redeeming quality (yes, one).  They are inspirational.  But that's it.  All you need to learn from them you can get by watching their free videos.  I've talked to tons of people that have paid $10K, $20K, $50K to go to the boot camps and workshops and what I've come to learn is the "secret" stuff they tell you there is the same stuff they say for free everywhere.  There is no secret to real estate.  You need a goal and a plan and then you get to work, step by step.  It's hard work but if you enjoy it then it's not work at all :)

I'm already noticing less competition on deals which is starting (starting!) to get sellers to express flexibility on price.  I even had a broker call me to tell me about an off market property (my favorite kind) and admitted there probably wouldn't be a ton of offers (very different attitude than in the past!)

I buy $3M+ commercial properties and up until recently competition was fierce and sellers were greedy (as is their right in a seller's market).  But the tide is changing.  Toughest thing now is getting decent financing.  Hard to predict where it's going and where it will be at in the next 12 months.  Best thing now as it always is.... networking!

@Brendan Savage - why would you let him get all of the equity? You came to an agreement to get bought out for $88,500 which means he gets to keep $33K in equity? Yes, you won't find a DSCR lender that will do the loan with your brother living there. That's because they're loans are commercial loans. Sounds like you need to up the rent to friends. Why are you renting so cheaply to them when you and your brother I having difficulties? Make them aware of the situation and they either pay more or you get higher paying tenants in there. Then maybe you could find a local bank that will do the loan.

@Samuel Hancock - it is not one or the other.  You need to learn stuff on your own but you should ALWAYS be networking.  Within the next few months I'm going to be over 200 rentals and networking is an even bigger part of my success now than it was in the beginning.  Networking will help you find deals, financing, partners, strategies, insight into up and coming areas, best practices etc.  Good luck and feel free to message me with any specific questions.

@Joshua Harter - Kudos to you for doing your 1st deal.  You're already ahead of probably 90% of the people out there that want to invest in real estate.  They want to but never pull the trigger.  So congrats!

You're not alone and you're not imagining things....It is difficult to get financing for properties where the loan size is under $100K.  I learned the hard way early on when I bought a handful of properties with cash that were under $50K thinking I would just do a cash out refi after closing.  Lesson learned!  I would focus on going bigger.  The cheaper properties while attractive are more difficult to finance.  You're better off going bigger even if it means bringing in a money partner.  You'll be able to scale quicker and easier.

If you end up needing a loan over $100K feel free to message me and I'll connect you with non conventional lenders that finance deals based on the property not the borrower.

@Joe B. - When I coach new investors, the first thing I do is talk about their goals.  If you don't have a target, how are you going to hit it.  The simplest plan is to come up with your goal, set a timeline, assess where you're at now, figure out the series of steps needed to get to your goal.... then determine what you can do right now to get started.  Look at this plan every single day and tweak as needed.  Never fails.

@Luke Hutchins - Have you tried a local bank? That's where you'll get the best rate. If that's not an option due to their underwriting requirements (W2 and tax returns), then I'd be happy to help. I work with a handful of strong commercial lenders to build my portfolio (closing in on 200 units). Their rates are a little higher but if the property cashflows or you're buying one that needs work and the numbers pencil out in terms of what you're buying it for, what the rehab will cost and what the ARV will be...then you'll get approved no problem. Message me and we can see if they'd be right for what you're looking to do.

@Alexander Popusoi -

1) You don't need POF to wholesale (I got my real estate career wholesaling. It's not easy but it is definitely a low barrier way to break into the field. You need to spend time and money on marketing. The less money you have to spend the more time you need to put in to make up the difference

2) Hard money lenders will require you to have an LLC. Their loans are commercial and if they need to claw their money back it's much easier to do against an LLC than a person.

3) Private money lenders do not require an LLC. The difference between hard money lenders and private money lenders is, the first is usually a company and the second is usually just an individual. The line is gray in terms of what that mean to you. Generally hard money lenders have an established process, criteria, rate and terms (because they are companies that do this regularly) and many of them are very similar. They also all charge points. Private money lenders are all over the map. I've gotten private money anywhere from 5.5% to 15%. Many of them do not charge points or if they do it is minimal (1/2 - 1.0 as opposed to 3).

Based on your question, it sounds like you have much more to learn.  Feel free to message me with any specific questions.  I started where you are 8+ years ago and now I'm closing in on 200 rentals :)

@Anthony Jones - depends on the lender.  I work with national investor friendly lenders that don't require W2s or tax returns.  They loan based on the financials of the property.  They only lend on investment properties.  Rates are a little higher but a lot easier to get approved and funded.