All Forum Posts by: Salvatore Lentini

Hi everyone - I've been fortunate to have success in this world I love called real estate investing.  I'm closing in on 200 units and now I'd like to help others.  I'm considering coaching but wasn't sure about the time commitment.  Any others out there that have done it or currently do it?  Just trying to figure out the most efficient way to give back some knowledge.

@Amin Parsi - way too low. You can put your money in other non real estate investments and get a better return with no work. My money partners generally look for a minimum of 7% guaranteed CoC. But, keep in mind, that's on deals that have huge upside in "forced" appreciation. When I buy properties I look to greatly increase the value of them through improvements, increased rents, additional revenue streams, decreased expenses (negotiating vendor contracts, regular maintenance to avoid surprise large cost replacements etc). So they get their 7% CoC but then usually after year 1 their member disbursements exceed that minimum and in years 3-5 their equity/ROI grows immensely. Bottom line, you can do better than 3%.

There are better options out there than Visio that I've been using to build my portfolio to 200+ rentals, especially in the "no W2, no tax returns" arena.  Depends on what you're looking to do.

Fannie and Freddie do 30 year MF loans in that price range.  You need a group like Berkadia or Greystone to do the deal.  They are approved mortgage brokers for them.  2 of only a handful I believe.  If you're serious message me and I can get you in touch with someone.

Agreed.  Dayton OH has been steadily growing. I'm currently selling my smaller multi families so I can put the money into a 25 or 50+ unit.  I've done the same near me in PA and just repeating in Dayton.  Great cash flow if you have a good property management company (which thankfully I do).

Dayton OH.  I owned a handful of single family rentals that I sold and am selling a handful of small multi family properties there so I can consolidate my units into something bigger...say 25+ range which I've already done near me in PA.   I've noticed a lot of California residents choosing to invest Dayton.  California and New York actually.  Also helps to have a good property management company!

@Tylor Petkovich - private lender?  As in, a person or a company?  Generally private lenders are individuals.  Hard money and commercial lenders are companies.  With private lenders there are no set rules.  Most want either high interest or equity.  You'd be hard pressed to find a private lender willing to do a 30 year at 5 or 6%.  There are a decent number of commercial lenders that will do that though.  Your rate will be a little bit higher than a brick and mortar bank (if we're talking commercial) but you'll likely get a 30 year term instead of 20 or 25 so that makes up for the rate.

@Steven Rosenfeld - you can also become a money partner. Ever since moving up into the $3M+ range on purchases I've started bringing in a couple money partners into the deals. They get equity, they're part of the new LLC (created specifically for that one property), they get quarterly member disbursements, tax benefits (which can be quite massive as we've started doing cost segregation studies right from the start - basically you get an accelerated depreciation schedule which offsets most if not all income the property throws off in the first few years), principal pay down on the bank loan and any appreciation (which on my deals I don't rely on market appreciation, I create it through forced appreciation - improvements, higher rents, lower costs etc). There are others like me out there you just need to find them. But it can be a way to get the best of both worlds. Passive income and the benefits of direct ownership.

@Jon Kelly - good for you guys.  What kind of rates do you have on rental loans?  Term?  I work with a lot of investors (myself included) currently looking for financing.

@Karissa Sampson - more importantly, it sounds like this is long term financing?  Is it amortized over 25 or 30 years?  If so there is also likely a prepay penalty.  If you refi within a year you could end up paying a 5% prepayment penalty.  Many loans have that. 5,4,3,2,1 step down % per year.  That will have a much bigger affect on loan cost than whether or not you decide to pay points. 5% on a $447K loan is $22,350.