All Forum Posts by: Salvatore Lentini

@Isaiah Stiverson - Network. Join a local REI group. If you need help finding one in your area message me. It's the very first thing I teach my students looking to get started in real estate. Actually, it's the 1st and it's, overall, the most effective throughout your investing career. Almost all of my deals now happen through relationships. Pretty much everything I buy is off market or I know about it the day it hits the market.

@Tim Ryan - that's actually how I started.  Well, the wholesaling part lasted a couple years...but the flipping to single family to apartments happened quickly.  Not easy but possible.

Hi @Christian Weber - you need to start generating leads.  It takes a lot of "no's" before you get a yes.  Zero in on an area, zero in on a strategy, map out your plan and diligently follow it everyday.  If you're all over the place with haphazard effort you'll never get your 1st property.  Remember, there's no "ONE" right way.  You just need to figure out which way works for you.  That's one of the major points I teach my online students.

@Deano Vulcano - I wasn't criticizing your number skills.  I meant, even with experience, I'm still hit with surprises (good and bad) on deals.  Some things are just beyond your control.  A skinny deal is not necessarily bad.  I do them just to keep the investing machine in motion.  I keep my crew busy and more often than not that skinny deal leads to connections with neighbors, a new sub, a new lender or private lender.... which then leads to a better deal.  So it's all just a matter of where you're at, how experienced, how many deals you do per year etc.

I bought a commercial deal 3 years back that cashflows very little, but I knew the commercial lots next to it were being purchased and changing from old warehouses to new townhouses.  The value of my property increased by 50% within the first year of ownership.  I was able to refi it and now I'm into it for $0.  I haven't had an appraisal recently but my guesstimate puts it at double what I bought it for.  It all depends on the deal and your personal goals/plans.  That's what I teach my online students :)

Hi @Matthew Crivelli - looks like you have some good loan products geared toward investors.  I'm always looking to connect with investor friendly lenders.  Message me if interested.

Yes, if they are the only investor, you have loan docs drawn up and they file with the county as a 1st position lien holder. Loan doc can be a simple 1-2 page doc, preferably drawn up by an attorney. Or if it's a longer project you can form an LLC and make them a part of it as a non voting member. If you are already getting hard money and they are also loaning money they would have to be a 2nd position lien holder. Some are not ok with that. Professional lenders mostly are not.

@Deano Vulcano - that deal's a little skinny.  If you're off on rehab costs, refi rate or if your appraisal comes in lower than expected...not good.  I know there's not a lot of inventory right now but that doesn't mean you should bend on your numbers.

@Forrest Hayashi - I work with investor friendly lenders that go beyond the typical 20 or 25 year terms you're referencing...and with decent rates.  Message me if you'd like a connection.

@Ken Mccarroll - ask for bank statements to make sure the deposits match the T12. Sellers are highly motivated to lie. Even if only 20% of sellers are knowingly dishonest that gives you a 1 in 5 chance of getting burned if you don't verify their numbers.

The good thing about commercial properties is the lender is going to have certain minimum numbers they plug in for different financials regardless of what numbers the seller says.  The seller might say they have 2% vacancy average.  The bank will put in 5% or 7% or whatever their minimum is for that type of property in that location.  The seller can say that repairs are only $1800/year but the bank based on whatever percentage they use or whatever flat fee per unit... their number might be $5000.  So, even though banks/lenders can be a headache because they're so conservative... that conservative stance ends up protecting you to some degree.

Nathan -  As far as cashflow to live off of it all depends on your plan.  You'll need to get pretty aggressive but it's doable.  Feel free to message me with specific questions.