All Forum Posts by: Salvatore Lentini

@Moni Charles - Would this be your first acquisition?  I agree with @Caleb Brown, that's a big swing for deal #1.  Not impossible but you'd be better off starting smaller.  Do a couple small multi family and then increase in size.  Your chances of success will skyrocket and you'll find it much easier to get financing.  If you've done other deals and are looking for financing, I know some investor friendly lenders that loan based on the financials of the property not you (so no W2 or tax returns).  Meaning, they'll underwrite the property and as long as you have decent credit and down money you can get financing.  Your experience and credit score will determine the rate.

Hi @Thomas Speer - I am not local to you but you are absolutely doing the right thing by posting and trying to network in your area.  I am adding a $3M property to my portfolio next month and partnering with someone local to me that I met on these forums.  As far as investor friendly lenders, I built the majority of my portfolio with these types of lenders.  I work with a handful that lend in most states.  Message me if you want me to put you in touch with them.

I'm an investor with 127 rentals in the Philadelphia suburb area (Bucks County, Montgomery County and possibly Lehigh County and Berks County).  I'm closing on a $3.1M commercial property next month and currently looking for 2-3 more acquisitions before the end of 2021.  Price range: $1.5 - $5M.  If you're a broker, seller, or know of a property that may be for sale, I'd love to talk.  Feel free to message me.

@Bernadeau C. I work with a lot of these types of investor friendly lenders to build my portfolio and helping others build theirs.  Traditional lenders can make it difficult to scale a rental portfolio quickly.  I never would've gotten to 127 rentals without using these types of lenders.

@Tyler Salzeider - Anyone that can answer question 3 with a straight face is full of it.  No one can accurately predict the real estate market or the stock market.  Prices are high but that doesn't mean they need to fall.  They could go flat for 5 years while the economy catches up.  They could rise and drop slightly for a decade and end up flat - drop 5%, rise 3%, drop 2%, rise 4% etc.  They could keep skyrocketing for another few years then plummet.  You just need to look for opportunities.  If you buy something that is priced "high" compared to the current rent but the current rent is below market... it could be a buy.  You could buy something priced "high" but the area is improving it may just be correcting to the local market.  If the property cashflows, it cashflows.  The price is too high if it doesn't cashflow and doesn't have ability to cashflow moving forward.

@Matthew Radniecki - most commercial appraisals will do a combination of sales comps and income approach.  And depending on your population density, the area they draw from can be pretty large.  It's not like residential where they pull from within 1/4 mile.  They can use comps from several towns away.  I always laugh when I see the comps they pull.  I would try and find some similar properties for sale yourself to get an idea of what kind of cap rate or rent multiplier those types of properties trade at.

@Travis Bagley - I connect real estate investors with investor friendly lenders and I always tell my investors (like @Jon Kelly said)...it depends on what you plan to do with the money.  Yes, your cash flow will drop...on those 2 properties, but if you intend to buy more cash flowing properties with the money, your global cash flow will grow exponentially from where it is now.

@Joe Villeneuve - of course I'm interested :)  You can just point me in the right direction on Google if it's too long to explain.

@Jill F. - partner with money partners. I realized early on if I was going to get to my goal of 397 rentals in 10 years, my own capital was not going to get me there. At first I used hard money and private money to do some flips to build up down payments on rentals. That worked at first but as I moved into bigger, multi million dollar properties, it was unsustainable. Now I bring in money partners. We form an LLC. Their investment is completely passive and they get equity in the deal. I find the deal, negotiate it, handle all of the due diligence, pay for legal, closing, and management and for that, I get equity in the deal. My investors love their returns and the increased value I create with our properties. I have 127 rentals and should be at 158 in the next couple months.

Also @Joe Villeneuve - I'll bite....am I missing an inside joke or is sarcasm flying over my head?  What's the number sequence "1073741824"?  I Googled and couldn't find anything.

Hi @Jennie Medina - message me and I can you find a local real estate investment group.  I can also get you in touch with some investor friendly lenders (speaking from experience, I know how difficult traditional banks can be!)