All Forum Posts by: Salvatore Lentini

@Monterio Felton - Is this your 1st real estate investment?  It will be tough to find investors to jump on board for a $6.3M property if it is.  Having 20 years experience in the business definitely helps depending on what you did in the industry.  If you cleaned rooms, that's not going to give your potential investors any level of comfort.  What is your planned pitch to investors?  Are you putting any money in?  Are you going to be the hotel manager?  How much equity will you be giving to the pool of investors?  What's the exit plan?

@Nathan Gesner - I don't answer calls that late but why is it that it seems like 90% of tenants call with a major problem after 5pm on a Friday so that you have to pay "Emergency Rate" with contractors?  Ha!

@Gloria C. - Sometimes money is expensive and sometimes it's cheap.  I bought a bunch of properties 8 years ago and due to my financial situation at the time I ended up with 6.99% loans.  But...I kept moving, kept acquiring, built a reputation, improved my credit score, built a portfolio and in the past 2 years refinanced all but one property (almost 200 rentals total).... averaged about 4 - 4.5% so now my properties are cash flowing like crazy.  And because I didn't let the 6.99% deter me I got into the market 8 years ago and was the beneficiary of crazy appreciation (nearly doubled the value of those properties!).  Sooo long story short, if the numbers make sense on your end with a rate of 6.125% then there's nothing wrong with it!

@Spencer Gregory  I agree with Caleb, at 80 hours a week it's going to be tough to work on a property outside of the one you are living in.  You can do this with a single family or even a duplex.  If you have any specific questions moving forward feel free to message me.  I'm closing in on 200 rentals and I started with zero just like you 8 years ago.

@Jonathan Brewster - depends on what you're going to do with the cash you get from the cash out refi.  If you use it to make renovations on the property which will then lead to higher rent and higher property value it could make sense.  If you're going to use it as down payment on another rental property that cashflows, just do the math.  How much extra cash flow, principal paydown, projected appreciation will you get from that additional property?  If you're using the cash to buy a boat or blow on materialistic things....not smart.  Keep in mind, the money you get from a cash out refi is not income and the interest is tax deductible so it is much much more powerful than any income you could earn through salary.

@Qiang Chen - no different than anywhere else.  As far as properties being overpriced on there, pretty much all properties are overpriced in the past few years regardless of where you find them - on Loopnet, Crexi, with brokers, sale by owner etc.  The key is sticking to your numbers.  Deals are out there even if their list price is too high.  And as far as Loopnet being where deals go to die, I also think it's where deals go to get desperate.  Make offers!

@Danny Jimenez - these are the types of loans I used to grow my portfolio to 150+ units. After 5 SFRs banks wouldn't loan to me anymore because of my debt to income ratio. My SFR investments were viewed a liabilities by underwriting. So unless I was able to figure out how to exponentially grow my income, I wasn't going to be able to get any more conventional loans. That's when I built a network of asset based lenders. It was like rocket fuel for my portfolio. I still work with a handful that I keep going back to deal after deal. There are a lot of these types of lenders out there but there are a lot of incompetent ones, ones that talk a big game and then don't deliver and unfortunately fraudulent ones as well. Message me if you have specific questions.

@Kaylee Walterbach -

The biggest contributor to my growth has been networking.  Early on my first half dozen single family rentals were acquired through a Realtor both on and off market.  She then told me about an off market 14 unit multi family, which I bought and it was like adding jet fuel to my real estate investing career.  I realized networking would accelerate the growth of my portfolio.  I went out of my way to contact brokers, title agents, lawyers, other investors... anyone involved in the real estate industry.  I'd make regular calls to them, meet them for coffee and take them out to lunch.  Since that moment of realization 7 years ago, all of my acquisitions have been off market and I am now buying 50,000 sq ft commercial buildings, triple net properties with global companies and developing multi families from the ground up.  So for me, networking has been the biggest contributor to growth and it is surprisingly fun too!

@Chris Seveney - that's what I was wondering.  I did something similar to you in creating an online course helping new investors get started but sometimes I get requests from high income types that want to skip that simple, cost effective way to learn and have a coach to hand hold through their first few deals.  Wasn't sure about the time commitment.  I have my real estate portfolio pretty dialed in and time-wise it is actually only equal to a part time job.  Ironically, the larger my portfolio has gotten, the less hours I've put in per week.  I'm big on automation and delegation to the right people.  Where I spend the majority of my time now is finding and funding bigger and bigger deals (and my kids - now that it's summer and I work from home).  I have a friend that wanted me to coach him but now it looks like he's going to be an equity partner on our next deal.  Anyway, just thought I'd put the question out there.  I appreciate the feedback Chris.

I hit send too soon.  Typo "Considering"  :)