All Forum Posts by: Salvatore Lentini

Does anyone invest in this area?  I own rentals in my area of Bucks county PA but came across an opportunity in the Wilkes Barre Kingston PA area and was wondering what the area was like in terms of rentals.

Thanks,

Sal Lentini

Hi Krista-

I know you don't want to hear this but repeated mailings is the key to successful direct marketing.  I get more and more calls with each mailing.  It's always surprising when after 6 mailings to someone they call and act like it was the first letter they ever received from me!

-Sal

Hi Todd-  That's really interesting.  I've been thinking of ways to partner with certain GCs I work with.   Just looking to solidify the loyalty and trust I've built with particular contractors.

If you don't mind, could you break down an example with numbers on how you've done a recent rehab partnership?  Beautiful work by the way in your portfolio.  I'd definitely be contacting you if you were in Bucks or Montgomery counties, PA!

I met with New Western at their offices today and am interested to see where our relationship goes from here. I'm not a newbie so maybe I won't be a good fit for them. Anthony and Nathan seemed nice enough. Time will tell if the words are backed by action and integrity.  Thankfully I have a shark of a lawyer on my team if any shenanigans should arise.  Anyone... feel free to message me in the future and I'll let you know how it goes.

Hi @Cervi -  Depending on the severity, we Kilz the floor (if plywood remove select sheets) remove 4 ft up of drywall and base trim all around the house and remove or treat some wall studs (where you can see stains or smell cat).  If you run an ionizer for a few days that can help too.  Cats are soooooo much worse than dogs when it comes to smells.

Hey @Tom Schneider  Welcome fellow Philly/suburb investor :)

I'm an active investor as well with similar plan. Flip for capital while building a rental portfolio for the future? I have not had much luck with REO and Short Sales. I've found mine through a mix of Craigslist, wholesalers and a Realtor that gives me first crack at listings before they become listings. Let me know if you have any questions.

Hi Tyler-  Welcome!   I would diversify your investment.  Why put it all into one property?  You can grow your investment much faster if you put down payments on cashflowing properties with conventional financing.  If you're concerned about weathering any economic downturns, keep some reserves for a rainy day.... or rainy year.  Or do private lending.  But again, diversify.  Don't lend it all to one investor.  Do 3 or 4 loans.  Take 1st position on the property.  Make sure they're getting it at a crazy discount so you're protected if you have to take it back.  Make sure they have skin in the game right from the start (equity and/or points).  Work with a real estate lawyer to draw up some "you promise me your 1st born loan docs" and make friends with a Realtor to get you good comps so you know for sure that you're loaning on a property being purchased at a deep discount.  Post your potential deal(s) on here and you'll find out if they're worth doing!

@Cedric Casby-

I'm glad you opted out of the $22K seminar. All of those gurus follow the same playbook. Sell a book or give away a FREE ebook/download. Or do a free 1 hour event somewhere. Pitch the 1 day workshop or weekend seminar for hundreds of $. Then, once there, hammer you non stop for the seminar that costs tens of thousands of $ where they show you all the "tricks". I know many people that have gone through that whole "funnel" and the general consensus I hear from the ones that are willing to admit it.... you don't get much more out of the super expensive one than you do the cheaper one. A lot of the guru material is outdated and/or not market specific. I think they, Rich Dad included, are great at getting you motivated but the actual nuts and bolts learning is learned by "doing". A Rich Dad book on my then girlfriend, now wife's bookshelf is what got me started years ago. At some point you have to pull the trigger instead of continuing to spend on education. You'll never be able to learn EVERYTHING before taking the leap and buying that 1st investment property because even after you've been investing for years you'll still be looking for new strategies and niches to learn. It's an ongoing process. Ask me how I know!

@Jeffrey Lester

I generally buy at 50% below market value or lower. The catch though is, other than the example I gave that had an existing tenant that obviously was ok with the living conditions, the houses I buy at 50% usually need A LOT of work before I flip them or before I'm ok with trying to rent them out. So you need to have the $ to put into the rehab. That's where you get the good deals though. I bought a property last year for $60K, put $35K into it and sold it for $162K (with $9K seller assist). So the deals are out there!

@Jeffery Lester

Getting a $100K property for $85K is not much of a deal. You can do better. You make your money when you buy. I bought a property with an existing long term tenant. I spoke to the tenant prior to purchase and they plan to stay for 3 more years. I purchased it for $65K and get $1500 month rent. I am doing minor repairs that prior landlord did not do that will total $10K over the course of 6-12 months. It will then be worth about $120K. After tenant leaves I will decide if I should sell it or rehab more extensively and sell for $200K. You can do better than 85% and that's what will protect you. Also, if you're cashflowing and paying down the principal.... that will further secure your investment. In my example above, I paid cash. After 3 years of rent payments minus taxes, I'll have recouped $42K of my $75K investment and then I get the $ from selling it :)