no response from your team of lenders - Posted by Amy

Posted by Ed Garcia on November 22, 2001 at 15:50:11:

Amy,

As a rule, I prefer not to discuss a borrowers financial circumstances on the net when they have requested financing from us. But since you have already opened this up for discussion, very well. You submitted your application on the 20th. As A matter of fact, I just saw it and was wondering if you are related to Bud. I noticed that you have the same last name.

Amy I can tell you right now that lenders are swamp with rates being down as they are.

Here you tell us that your broker is telling you that he can’t perform for 4 month and you’re wondering why we haven’t responded when we just received your app on the 20th, you’re tuff Amy.

Amy I won’t kid you. With the information you’ve provided, I don’t see a deal. You’ve bought the property with hard money and have only owned the property for 2 months and are now trying to pull out cash as well as pay off your Hard Money lender. I also think that someone is teaching you enough to be dangerous.

You have the right ideal, but no concept of time, how to properly use the information you’ve been given in relationship to LLC’s, or deal structuring. Your credit is only one problem. You’re using your LLC’s as though a lender would really care or acknowledge it. By the way Amy, loans don’t or shouldn’t take 4 months to do. When a lender tells you up front that he will take 4 months, he’s trying to tell you in a nice way that he is having a problem with your deal, that perhaps 4 month will cure. All I can tell you is, that demanding as the lending business is right now, nobodies backed up 4 months.

On SFR’s, most institutional lenders don’t make loans to entities. Can it be done, of course with Hard Money, but the majority of your institutional lenders make loans to consumers not entities. Can you find a lender? Yes, but it will be Hard Money so reach for your wallet. Will banks do it? Yes with a borrower who is a preferred customer, and they have a banking relationship with.

Amy, you have already submitted some information to us, and Neal Johnson will call you. Chances are he will request more information on you and your real-estate movement. He will see if you have any properties in your LLC that has seasoning as well as equity. If it’s something he can work out between you and he, he will handle it.

If it becomes complicated then he will ask me to call you and work with you. In the even you would like to call me personally, please feel free to do so at (909) 944-0199.

Till then Amy, I would like to wish you a Happy Thanksgiving,

Ed Garcia

no response from your team of lenders - Posted by Amy

Posted by Amy on November 21, 2001 at 13:19:24:

Ed,

I have sent my information to your team of lenders but have not yet heard from them. I was wondering if you could tell me if the following scenario is possible…

I have an LLC that rehabs homes for resell. I have decided that I want to several of these homes to myself as an individual at a small profit to the corporation and take cash out with the equity to buy other homes.

I have a bankruptcy that was discharged a little over two years ago and my FICO is 590. I do have a local broker that can do it, but it may take as long as 4 months and I need this done ASAP. Thank you!

Re: no response from your team of lenders - Posted by Senora

Posted by Senora on November 23, 2001 at 24:07:25:

I am a Mortgage Broker in Minnesota. We do alot of hardmoney, subprime and creative financing loans. I have to agree with Ed completely, with one tiny comment…if the property has only been owned for 2 months…it would not be uncommon for us to tell a borrower that they may need to wait additional 4 months due to get a minimum of 6 months title seasoning on the property. Many lenders have 6-12 month seasoning requirments. Did you ask your lender “why” the loan would take 4 months?