All Forum Posts by: Salvatore Lentini

Hi @Doreen Hall - as long as you're working with investor friendly lenders, it's not hard. Instead of using your HELOC, you could buy it with Fix & Flip funding which would allow you to do less money down at closing. You can get a 90LTV loan and 90-100% of the rehab costs. Or you could fund the rehab with your HELOC. Then when you're done refi into low interest rate permanent financing. If you need to get connected to investor friendly lenders, feel free to message me. I funded most of my portfolio of 127 rentals (soon to be 154 next month...fingers crossed) with these lenders.

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Sal Lentini
Total Capital Network
Founder & Fellow Investor (127 rentals and counting!)

@Anthony Calek - it depends on your situation and plans.  It can be a smart move in terms of your ability to get rid of problem tenants, if you intend to refi or sell you'll run into difficulty.  You may get a haircut on valuation.  But...if you don't have any intention of refinancing or selling soon, no worries.  And if you think you might, you just need to position yourself accordingly. Slowly convert existing tenants over to annual leases and anyone that won't agree, find new tenants.

Hi @Felicia Hamilton - I would suggest spending your time finding a good deal on an apartment building of that size before worrying about the financing.  Deals are harder to get right now than financing.  So, if you end up overpaying (or over-offering) you'll have trouble getting financing.  You need to find off market deals, or form some good relationships with brokers, or be the 1st to put in an offer.  Inventory does not sit in this market.  I looked at a $9M - 50+ multi family and I was the 23rd showing and it had only been on the market 1 week.  They were listing for 2 weeks and then having everyone submit their highest and best offers.  Good luck.  Once you find something, feel free to message me and I can connect you with investor friendly lenders.

@Robert Zabel - a lot of investment properties in the 1-4 unit range are financed with commercial loans anyway.  Commercial loans, while more expensive are actually easier to get in my opinion.

@Kacper Scheibe - depends on what that balance on your credit cards does to your credit score.  And on credit cards the 0% offers are usually on purchases not cash advances.

@Brian V. - you can get a pretty good handle on what you'll be able to do for long term financing once your rehab is complete. The X factor is, how accurate are your ARV numbers, rehab numbers and timeline? The lender's rate and terms might not change but if you're not right about your projected numbers you could run into a situation where you can pull all the money out you put in/borrowed. I work with tons of investor friendly lenders that I've used to build my portfolio. Happy to put you in touch with them.

I think you should be able to get 5% on a deal that size, no problem.  Also, the market is so hot right now and inventory is so low you may be able to work out something better.  You could get an appraisal, list it yourself and then pay a real estate lawyer to take it from there.  Lawyers are expensive but you certainly won't need to pay $240K.  I just looked at a 50+ unit, $9M+ property last week that had 24 showings in the prior 7 days!  Pretty sure I won't get that deal!

@Anjesh Dubey - I price shop most of my properties every year.  Keeps my current company honest and sometimes there are huge savings to be had just due to different insurance company's criteria and growth plan.  Having most of your policies with one lender will get you discounts.

@Manuel Villegas - absolutely.  Feel free to message me with any specific questions you have.  Happy to help.