Going to the bank for a rehab. What do I bring? - Posted by Robert

Posted by Charlie Ramos on November 06, 2005 at 13:59:32:

When will Mr. Garcia come to the Orlando, FL area ?

Going to the bank for a rehab. What do I bring? - Posted by Robert

Posted by Robert on November 02, 2004 at 14:39:51:

Hi Everyone,

I am preparing to go to a bank to ask for a line of credit for rehabs, and to establish a relatiionship with them. I would like to know what I should bring, or what I should say to them. Would a pre-approved letter from a home lender help show that I am qualified to purchase a rehab? If anyone has gone through this process already could you give me some advice to prepare. Thanks


Re: Going to the bank. What do I bring? - Posted by Ed Garcia

Posted by Ed Garcia on November 03, 2004 at 19:27:40:


A WLOC is not a credit line that is handed out to every borrower or investor. This credit line is provided to borrowers on a case-by-case basis. Remember banks can do any type of loan that they choose too and can create or accommodate terms to suit the borrower.

I can?t teach you what I teach in my workshop, in just one post to help you get a WLOC.

Each borrowers circumstances are different and I modify their presentation to the bank based on their circumstances and my knowledge of bank requirements. Although people have the opinion that banks make loans based on information that is black or white, which is not true, because with each investor there is definitely a gray area and I do a lot of modifying and compensating in that area.

The mechanics and criteria of a ?Working Credit Line? can vary depending on the borrower, the lender, and the circumstances. These lines are not carved in stone and can very from lender to lender. I?ve had a couple of investors in my third workshop, one named Pete Julian, and the other I think was John Longest both from Ohio, and both have several credit lines with different perimeters. At my last workshop I had 15 alumni of which 5 of them had credit lines same thing different perimeters.

You the investor are the architect of your credit line; the bank is the provider and will try to keep it within their lending policies and guidelines.

If you and your bank have a good working relationship, you?ll find them to be more flexible with their policies and guidelines. That?s why I target small banks rather than large, because it?s easier to establish a relationship with a lender, were you can talk to the principles that are involved with your loan decisions.

Robert, a working relationship doesn?t mean that you go to the bank get your working credit line and go on your merry way. It means that you go to lunch, golfing, what ever, but spend time with your banker, to develop a relationship not just an acquaintance with your banker.

Both Julian and John, who are not associated with each other, each have one of their credit lines where the bank gives them up to a certain LTV per deal and will let them pull cash for fix up or to keep. These men have been established investors for years and have learned how to improve their lines over the years. There was no Ed Garcia to teach them when they started; it was just trial and error. This trial and error takes time and many times the borrower gets discouraged and just gives up.

There is no question that I streamline that process, but that?s because I?ve been doing this for 34 years.

Robert, your working credit line is yours, and has to be tailored to meet your needs. However, you may not get what you want your first time out, and may have to earn the credit line that you so desire.

In closing I decided to share with you an old post that I made a while back to someone that asked the same question. I hope that it helps you.

How to get a Working Credit Line


You don?t tell us how much experience you have in investing, which is an important factor to a bank. But the Cadillac of financing for an investor would be a Working Credit Line.

A Working Credit Line is AWSOME.

There are just so many advantages to having a working credit line.

(1) You can make CASH offers, allowing you more profit in your deal.
(2) You can CLOSE faster, making that extra deal, and more profit.
(3) You can SEASON your properties, by leaving them on your line for a while.
(4) You can use it to do FLIPS, where conventional financing is too expensive.
(5) It’s CHEAPER money, meaning you pay 1 or 2 over prime and no points
per transaction.
(6) You can make offers with more confidence, which is projected to the seller,
or Real-estate agent.
(7) There is NO LIMIT, as to how many deals you can do.
(8) It?s easier on your credit score because you can do multiple deals with out affecting your credit score.

And the list goes on. First to obtain a working credit line, you must have a TRACK RECORD.
This would not be a financial tool for a Newbie, the Banks would not want a Newbie,
because of the lack of a track record.
As a rule, a Business Plan is required. I usually recommend soliciting a small local Bank. The reason being, you can easily establish and build a relationship with a small Bank,
rather than just taking a number at a larger National Bank.

Phil, I teach people how to get a working credit line, and I can assure you that once you have one. You won’t know how you did business with out it. There’s not a whole lot of information I can give you in just one post other than to tell you that, if you think that you’re ready for a working Credit line, I suggest you contact your local community bank, who I feel would be the best candidate for you at this time.

Now let me spend a few minutes telling you about a very important tool in getting a ?Working Credit Line?, a BUSINESS PLAN

A Business Plan is extremely important for 3 reasons.

(1) For you the Investor, it allows you the investor an opportunity to lay out a game plan from beginning to end. In that game plan you can evaluate yourself and your plan. If you done your job right, you can put all the pieces of how you operate together like a puzzle. Such as choosing your title company, appraiser, contractor, tell how you plan to invest in real-estate, your experience level, how you plan to buy, market place, how you plan to market or sell them, What your plans are if they don?t sell, etc.

(2) For you to obtain other Backers (Investors), now you can show them a solid buyable plan, rather than give them some verbal mambo jumbo with holes in it. The Backer will feel more confident in you and your venture, because you have mapped it out for them.

(3) For a Working Credit Line from a Bank. This line is just like having an Investor. It?s designed to allow you to buy property making cash offers to get a better price, cheaper cost for the money, faster closes, get more deals, can season your deal, etc.

Phil, these are just a few reason for a Business Plan. Yes if your intentions are to just do a deal here or there, you don?t need one. If you plan to be a real-estate investor or entrepreneur, it?s PARAMOUNT, for growth and getting the real money from banks as well as romancing Investors (Backers). A good Business Plan adds CREDIBILITY to you and your real-estate venture.

Phil, here is an example of an out line of a Business plan that I give in my workshop.


A BUSINESS PLAN is an important tool for the Real-estate entrepreneur in order to obtain a working credit line from a Bank, as well as working with other investors or financiers.

No doubt the entrepreneur grows weary of hearing at every turn about the need for a business plan.

As a banker once told me, I don?t hear too well, but I read real good. Give me your business plan first, then we may talk. The reason for this attitude are several and sound.

First, they want facts, not hype. Most personal presentations are overloaded with hype. Bankers or Investors do not want to be sold a ?bill of goods?.

Second, they want statistical and financial data to message before meeting with the entrepreneur.

Third, they want time to do some independent investigation of both the entrepreneur and the proposed business before meeting the entrepreneur.

Finally, they want some evidence of his analytical and conceptual skills.

Prospective associates should be most interested in your plan. Exactly what do you propose to do? How do you intend to do it? Your plan not only discloses you intentions, but how well you have thought our your venture.
Unfortunately, most entrepreneur give scant thought to many aspects of their proposed Enterprise. It often becomes all too apparent in the business plan that the promoter has not done their homework, therefore is not someone with whom you could trust their information.

Even more importantly, the business plan is essential to you planning. The things you would do in writing a business plan will force you to do many essential tasks that you would likely overlook otherwise. The very act of writing a plan for your proposed business will be most informative to you. Definitely, it instills a much needed discipline to the often overly enthusiastic of the ? eager beaver investor?.

Another definition for business plan, is a ?GAME PLAN,? which in all reality we should have when doing a business venture .For this reason, most college entrepreneurial Programs are built around the writing of a business plan.

Most entrepreneurs or investors, are not familiar as to how to write a business plan.

As a result, they try to find someone to write it for them. There is much business for the person who can write good business plans. Unfortunately, much of the benefit of a business plan is lost if you have somebody else write it for you. Sitting down and pounding out the plan, section by section, forces you to do considerable thinking and evaluation of your plans… Without expectation, entrepreneurs who have written their own business plans, report that they were forced to rethink many aspects of their venture when it became apparent to them that they were some serious flaws in their thinking. The parts did not fit together properly.

Your plan is not a blueprint which you follow step-by-step in creating your empire. Instead, consider it a road map from where you are now, to where you want to go. There will be detours and lots of bad roads, but you will still find you plan helpful even if you are continually changing it as new information and new experiences are encountered.

Not surprisingly, most people first want to know what goes into a business plan. The outline below provides some ideas of what might be included in your plan, depending upon the exact nature of your proposed venture. Although I?m teaching you this plan for the purpose of a banking credit line, I felt it important for you to understand the full value of a business plan. Use common sense! What aspects are there to your new enterprise? You?ll have to plan every aspect of your business, either formally or
informally as you proceed. One way or another you must make a lot of decisions about what you are going to do in all phases of the business.


Summary?An Executive Overviewed

The Concept
The Market
The Organization
Your Credentials
The Product or Service
Production Plans
The Marketing Plan
The Financial Plan
The Schedule
Operating System
Control Systems
Growth Plans

Phil, Go to Business Advice – VA Business there you will find some information on doing a Business Plan.

Nick, I hope that this post has been helpful to you and wish you well.

Ed Garcia

Take Ed Garcia’s Course! - Posted by Bob K

Posted by Bob K on November 02, 2004 at 15:07:47:

Not sure you’re going to get a complete answer in this forum… Its not something that can be answered in a brief text posting.

In fact, I paid the $$$ to learn from Ed Garcia / Terry Vaughn at the “How to get lenders…” seminar they do. What Ed teaches is exactly the information you need. It involves creating a business plan, and how to present it, and how to select the right bank to present it to.

I recommend learning what Ed teaches first…


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Re: Take Ed Garcia’s Course! - Posted by Ed Garcia

Posted by Ed Garcia on November 03, 2004 at 19:40:22:

Hi Bob,

Workshop number 8, November 15,16.17, 2002, Atlanta Ga.

I hope things are going well for you down in South Carolina.

Thank you for recommending us, and if I can be of any help to you, don?t hesitate to call me.

Once again Bob, thanks for the kind words,

Ed Garcia

Re: Take Ed Garcia’s Course! - Posted by Bob K

Posted by Bob K on November 04, 2004 at 10:42:43:


Yes, Workshop #8, in Atlanta.

I?m not sure that we have talked since, but I?d like to let you know what you taught me in the seminar, and helping me shape my business plan was 99.5% of the reason why I got my WLOC from my local bank. (the other .5% is my charming nature, and ability to speak and present effectively :slight_smile:

Anyway, I?ve done 8 deals since then using my WLOC. Most were complete rehabs, where I NETTED at least $30k on each (these were short sales). Some were quick flips/double closes where I did not even touch the line.

My business plan, thanks to your feedback, worked flawlessly. It is a rock solid plan, and I would not have produced such a plan without your guidance.

My banker ? VP of Commercial Lending at our small local bank, met with me, reviewed my plan, peppered me with all the pertinent questions which I was able to efficiently answer. He offered me initially: 95% of loan amount (wanted 5% of my skin), at Prime + ½% for 1 year, interest only.

Later, after a few deals, he allowed me to do 100% of loan amount (I was buying at 50% of market val), 1-yr interest only?.. Then HE ASKED ME, ?from a cash-flow standpoint, would you like to do interest only QUARTERLY PAYMENTS? ? of course I said yes, and its been a god send to my cash flow.

I see tons of people on the CRE board that suffer the problems I WOULD have if I was not armed with the knowledge and ability to use the banks money, that why in the post earlier this week I told the guy to take your course. Hope this update finds you well,


Bob Keenan