Posted by Ed Garcia on January 25, 2001 at 21:27:40:
Chris,
He sure can, if he’s purchase at a good LTV of market. Chris a lot would depend on the investors experience, relationship with the bank, and how he got the bank to set up the line. At my workshop in Atlanta last year. I had several investors who’s line not only gave them 100% of purchase price, but fix up cost as well.
Ed Garcia
Another question for Ed ! - Posted by Chris Swain
Posted by Chris Swain on January 25, 2001 at 20:38:20:
Hi Ed,
Suppose a Realtor-investor owns part of several different corporations. Corp.#1,#2, and #3.
Corp.#1, a rehab-construction company, buys a single family home for $60,000.
Corp.#2, a realty company receives $1800 commission.
Corp.#1 sells property to Corp #3, a property management company, for appraised value of $70,000.
Corp#3 seeks long-term financing of $63,000 at 90% LTV.
…would this arrangement be acceptable to a mortgage financer?
It is very kind of you to use your valuable time to assist ignorant investors like me! I truly appreciate your generosity.
Re: Another question for Ed ! - Posted by Ed Garcia
Posted by Ed Garcia on January 25, 2001 at 20:53:31:
Chris,
There are several things here to take into consideration, that you’re not giving us in you scenario that could help us verify the various incomes. However if this individual is receiving these various income streams, the tie in should be his or her income tax return.
And yes, a lender can take various sources of income into consideration.
Ed Garcia
Re: Another question for Ed ! - Posted by Chris
Posted by Chris on January 25, 2001 at 21:16:53:
Thanks. I guess what I’m asking is: can an investor, thru use of a credit line, essentially avoid some investor financing restrictions and possibly achieve 100% long-term financing?