All Forum Posts by: Salvatore Lentini

Hi @Marlia Stone - wow... that's a lot of questions :)

1) How did I know I was officially ready?  I read my first book on real estate and was hooked.  But it took me 9 years after that to actual start investing.  Serious Analysis Paralysis.  I became an expert in Analysis Paralysis and breaking out of it is one of the major focuses in my online course.  There's not ONE method but a series of strategies you can implement to help push yourself into getting started.

2) My credit score?  Mine was good.  I've always kept a tight rein on my finances.  But having a bad credit score is not a deal breaker.  It just affects which investment strategies you should start with.  Low credit makes getting long term bank loans difficult but has little affect on getting a short term loan for a Fix & Flip.

3) What route did I take?  I started with wholesaling, then Fix & Flips, then Fix/Rent/Refi with single families, then Fix/Rent/Refi with multi family, then commercial, office and land development.

4) What things now do I wish I was doing then?  That's a tough one.  I would say that I would've gone bigger sooner but I think it would've been forced.  I'm pretty happy with the natural progression I've had going from smaller deals to bigger deals.  I guess one thing I could've done sooner was focusing more on networking.  All of my deals in the past few years have been through networking.

@Alexcia White - I know it's hard to hear this but I can't answer that question for you.  There's no ONE right answer.  It all depends on you and your unique financial and personal situation.  How much money you have, how much time you have, what your short and long term goals are.  What you WANT to do (there are so many different aspects of real estate - and you want to make sure you focus on an area you enjoy)

@Earl C. - getting started can be overwhelming.  Feel free to message me with a specific question to get you pointed in the right direction :)

@Ken Dunbar - terrified to try and find it or terrified to take on the debt?

@Harry Torrenegra - this is where it gets fun.  At least I think so.  You need to start getting creative and strategic with how you acquire future properties now.  As you can imagine, getting my portfolio up to 127 rentals did not happen because I have boatloads of money to throw at every property that comes my way.  Nope.  I need to plan out my acquisitions now.  Seller financing, private lenders, assumable loans, master leases, refinance existing properties, undervalued properties that can be repositioned and refinanced so I own them for $0 etc.

I was looking at 3 deals a month ago that were all $3M+ and I was trying to figure out how to buy ALL 3.  Initially the idea seemed crazy, even to me... but eventually through kicking ideas around between me, my partner, mortgage broker, lawyer, the brokers for the different deals, the seller on one of them etc.... I actually had hatched a plan.  One would be acquired by assuming the mortgage (I found out it was assumable), one would be acquired through a combination of personal cash, bank financing and a seller 2nd mortgage and the other would be acquired through a combination of money partner and seller financing (he owns the property free & clear).  I lost out on one of the deals to another buyer but the other 2 deals are very much in play at the moment.

So Harry, get creative and strategic.  Personal cash has its limits... and you just found that out.

@Krishnan T. - Traditional banks will require W2 income but I work with investor friendly lenders to build my portfolio.  I've been self employed for 22 years so I've built up quite a network of lenders that are ok with that.  They are out there, just harder to find.  Message me if you'd like to discuss further.

@Jordan Francis - there are companies that specialize in 1031 Exchanges.  You need a qualified intermediary to handle the transaction.  There are specific rules and timelines you need to abide by such as identifying another property within a certain time frame, closing within a certain time frame and it being an approved type of property (like-kind).  This is not something you do on your own.  Consult a real estate attorney.  As far as finding a good investment, it's like any other real estate investment: network with other investors, brokers, attorneys, accountants, title companies, lenders, get on brokers' radars, Loopnet, buy lists and do mailers.  There's no ONE easy way.  If there were everyone would be rich and successful :)

@Tristan Firestone - What type of investment property are you looking to buy?  Fix & Flip or Rehab & Rent or Turn key Rental?  Let me know and I can tell you how much down money you would need.

@Morgan Basham - Well your first line of defense is running your numbers.  If you need help with how to calculate the financials on a property feel free to message me.  Running the numbers will let you know if it has the potential to be a deal.  Then if you view the property and like it, you can get a home inspection or pay a good contractor to come out and look.  Offer to pay them a flat rate for their time.  If you get the property under contract the bank will require an appraisal.  This will let you know if you're overpaying for the property.  Get an insurance quote.  They will make sure it's not in a flood zone.  Also, the seller is required to disclose any known problems with the property.  Prior to closing the title company will do a title search and make sure you get a clean title (no liens or unpaid taxes).  All of these things prevent you from taking on a mountain of risk.

@Levi Stillman - happy to help and give back.