To Ed, Thanks - Posted by Mark NC

Posted by Mark NC on July 31, 2001 at 10:30:27:


Thanks for writing back. I have structured the plan as you said (purchasing the properties at 80%FMV) I asked for interest payments of prime +1%, (interest only to keep the payments low) I stated in the plan that I would refinance the loan into a 30 yr if L/O did not work and I keep it as a rental.

All the lenders say was the 100% financing. “We never do that.” “You can not get a line of credit to buy properties in the future.” Can I purchase the couse material from you, or pay you to review my plan. Anything to get this line.

To Ed, Thanks - Posted by Mark NC

Posted by Mark NC on July 31, 2001 at 08:48:39:

I went to and presented my business plan to all the local banks in my area. I think most are still laughing. They all told me that they do not perform 100% financing on homes even if I was using a line of credit.(sure not on an unsecured line of credit). I stated that I could secure the line with the properties that I purchased and they just laughed. You can not secure a loan with property you have yet to purchase.

I have made some contacts on this sight and I have spoken to many on the phone and they said they would contact the banks for me. Have I already messed up my chances of getting a line? Should I use companies from the Internet.

If any one is from North Carolina that has established a line please contact me and tell me your secret.

I talked with you Mr. Garcia on the phone and you advised me on how to set up my business plan and I think it is pretty good If I do say so myself. I have worked with rental properties for close to ten years, and have my NC Brokerage Licence. I have purchased and managed 5 properties of my own and have currently 15,000 in the bank.

Still the Banks laugh.
Still the Banks laugh!

( I posted this before but wanted your responce before I pay someone else to look at my Business Plan. Can you help Ed, I will be able to Pay for Help.)

Re: To Ed, Thanks - Posted by Ed Garcia

Posted by Ed Garcia on July 31, 2001 at 10:11:08:


If the banks are laughing, then I’m sorry to say that it’s your PRESENTATION.

Presentation is extremely important and goes hand in hand with a good solid Business Plan. If you have done your job right, and have structured your plan so that it is a good SAFE venture or loan for the bank, they are not going to laugh at you.

For starters, you never present your deal, requesting 100% financing. Curtain words can be turn off words for lenders or banks. You show the bank how you have structured you acquisitions, and that you purchase at lets say 65 to 70 % of Market Value, purchasing them with a built in profit structure. You also demonstrate to them that because of the way you purchase, that it increases your CASH FLOW in the event you have to hold the property as a rental. Banks will tell you that they value the property based on purchase price, or appraised value, which is ever LOWER. Don’t believe it, that’s one bank rule that can be bent or dealt with.

Not only do you show them that you’ve purchased below market, but have positive cash flow in the event you CAN’T SELL the property, allowing you to refinance it with a mortgage company, as an additional EXIT PLAN to remove it from your credit line.

Mark, thank you for the compliment on how I’ve shown you the light as far as what a bank has the ability to do. However, some how you have obviously missed some important aspects on how to work the banks. It’s not uncommon, and working banks and lenders, are most real-estate investors weakest aspect of the business.

No body teaches us “HOW TO GET THE MONEY”, and that’s why Terry Vaughan and I do a workshop titled “How To Get Lenders Fighting To Give You Money”.

Good luck Mark, and remember what Henry Ford said. “Failure is only the opportunity to begin again more intelligently”.

Ed Garcia