All Forum Posts by: Salvatore Lentini

@Adam Prince - you don't need to refi your current property to get money out. You could just do a HELOC. Then you'll have that money available to you but won't be paying interest in it unless you use it. If you use it the interest expense will be used in your calculations on the investment property (as a loan) and not your current house when you go to rent it (and you're determining cashflow). Does that make sense? A savings of $7K a month combined with a HELOC would allow you to buy multiple investment properties pretty quickly. You could use one for the down payment and one for rehab. Anyway, just a thought. Message me if you have any specific questions.

@John Sanchez - my gut is telling me it will need more than $20-$30K in repairs. That's a pretty light rehab so why would someone sell it to the wholesaler for $90K if it doesn't need much work and properties in the area are $160-$180K? You definitely need to get a more accurate number on the rehab because there might not be enough room in the deal, especially if the ARV (After Repair Value) might be on the low end of $160K. Your realtor should be able to give a more accurate value than that. If not, you need to use $160K in your calculations and not assume you'll get $180K. I'm thinking the wholesaler you're dealing with is being a little too greedy wanting $20K. And also probably underestimating repairs so that their $20K fee works when you run the numbers. The market is also hot now so they might be able to get it. But that doesn't mean you have to be the one to do that deal. Bottom line, get more accurate numbers on repair and ARV.

@Scott Williams - if you were out bid by a cash buyer...can you become a cash buyer?  You don't need 100% of the cash.  If it's a Fix & Flip you might only need 10% and if it's a Rental 25%... you can use private or hard money for the rest.  What type of properties are you looking to buy?  There are lots of opportunities around the Cleveland area.

@Aaron Arnett - every deal is different and you'll learn on each one.  127 rentals and I'm still coming across new things to learn.  That's why those that try to "learn everything" before buying their 1st investment property never end up buying.  You CAN'T learn everything ahead of time.  Some of the stuff you need to experience.  And things are constantly changing too.  Right now, you need to make sure your contractor or you are going to be able to get the materials needed and even appliances.  Because of Covid, material prices are currently highly elevated and some things are unavailable for weeks...depending on your area, you could wait 5 weeks for a fridge, dishwasher, stove etc.... when normally you could get them delivered within a few days.

Certain townships are easy to work with and others are not.  I recently had to get my lawyer involved in dealing with a township where I own several properties.  Long story but they were trying to force me to do something unnecessary that would've impacted me financially in a big way and would've caused me to waste a lot of time.  I tried dealing with it myself by reviewing their zoning ordinances and pointing out to them how I was not in violation.  They wouldn't listen.  Then magically when I got my lawyer involved it went away.  So see if you can ask around about the township you are thinking of investing in.  Because if you have a rental property there as opposed to a fix & flip, you're going to be dealing with them for a long time.

@Domenic Bussanich - have you joined a local real estate group?  (message me if you need help finding one).  Have you looked through the forums on here? There are lots of investors looking for financing.

@Daren Miller - I don't think an off market seller is as likely to accept FHA but that doesn't mean it can't happen. You're probably better off doing a cash deal (with private or hard money), or exploring the creative financing opportunities of seller financing, a seller 2nd, lease options, subject to etc.

@Delinet Villeda Jimenez - I feel like I may have responded to you already.  I apologize if I already did.  I'm trying to respond to everyone but this post is almost at 500 replies already and I fear I'm missing some questions.  I think you've made an insightful observation of your current situation.  If you are waiting for everything to be perfect before making the leap, you'll never buy your 1st investment property.  Why?  Because nothing is ever perfect...in life, ever.

I was stuck in your position for 9 years waiting for the perfect opportunity.  I was reading real estate books and going to seminars.  When I bought my first property I learned more in a few months than I did in those 9 years.  I'm not saying everything I learned was a waste... just that I didn't need 9 years worth!  One of the major lessons I teach in my online course is how to overcome fear and how to break out of Analysis Paralysis.  It's not just about confidence but building a plan.  The plan helps you break it down into tiny tiny steps so that is less overwhelming and also easier to get momentum going.  The more of these tiny steps you add in, the more the momentum builds until eventually real estate is all around you and you just enjoy the ride :)

Hi @Daren Miller - Good to meet you.  I wish all of my rentals were in y hometown but so far just 2.  I have rentals throughout Bucks, Montgomery and Berks counties in PA and also Dayton OH.  Inventory is tight out there.  You'll have a better chance getting an offer accepting by finding an off market deal.

@Tuan Dang - Who is putting up the money on the deal? Who is setting up the LLC and operating agreement? If one of the others is, I would still have your own attorney review on your behalf. I'm not sure how well you know the other 2 investors but you need to make sure YOU are protected. You're right, the 16 unit won't be as liquid but real estate in general is not liquid. There are pros and cons to partnering with other investors. I partner on all of my projects. Pros - it allows you to buy more and bigger deals, which in turn snowballs and leads to more and bigger deals. You spread the work load around. You're not responsible for EVERYTHING and you can divvy up job roles based on strengths. You can go on vacation and your partners take care of the property while you're gone. You don't have to deal with a basement with 4 feet of water with water tanks floating around in one of your apartment buildings while you are in Iceland (ask me how I know!) Do you and your partners have cash reserves for unexpected repairs or loss of tenants? A 16 unit can be very profitable but it can also become costly at times and you need to make sure you can cover those expenses when they pop up. Sometimes, depending on the problem, if you don't fix it immediately, you run the risk of angering and losing 16 tenants all at once rather than 1 (damage to the entrance to the parking lot, roof gets ripped off in a storm, main water line breaks, main sewer line gets clogged etc). But, that being said, I am a huge fan of multi family an think you can definitely have success with it right out of the gate. You just need to be smart about it. Do the other 2 investors have experience?