Good Credit, Good Business Plan, Unstable Income - Posted by George

Posted by Ed Garcia on January 23, 2001 at 11:40:42:


As far as the sporadic income is concerned, we have programs such as, Stated Income, ( NIQ) none income qualifier, (NIV) none income verification, easy doc’s, lite doc’s, no doc, etc. If your deal will generate income adding to your existing income then you can attempt to go for a working credit line.

When teaching financing in my workshop, my Marquee, is a “Working Credit Line”
George, this is the Cadillac way to purchase properties with built in equity.

George, here is a post I made to a gentleman named that gives a few advantages of a Working Credit line.

Re: Working line of credit

Posted by Ed Garcia on May 09, 2000 at 10:22:38:

In Reply to: Working line of credit posted by John on May 08, 2000 at 21:27:35:


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.

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.

John, 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.

Good luck,

Ed Garcia

George, I hope that this gives you something to think about,

Ed Garcia

Good Credit, Good Business Plan, Unstable Income - Posted by George

Posted by George on January 22, 2001 at 21:15:34:

To Ed or Anyone who has faced this kind of situation:

I have good credit (median score 710) and have some RE investment experience as I own a duplex with great positive cash flow and did a Flip rehab last summer. I use very conservative figures when offering on properties and, as such, I find my deals are far between. Let’s face it real estate is fun, but I need financial gratification to make it worth while.

The fly in the ointment is my “regular income”. I have some sporatic w2 income from temp assignments with Accountemps and some 1099 comission income along with my rental income and various stock and bond income. Basically, I am living a spartan lifestyle. My biggest source of income last year was the flipping of a single family and I want to do a few more of these again now.

Ed has been kind enough to present some options to those with poor credit, but i haven’t seen much to address a situation like mine: i.e. good credit, past RE experience, but unstable income.

Any guidence or hints will be greatly appreciated.

Thanks in advance,

George in Connecticut