"Working Lines of Credit"??? - Posted by Mike V

Real Estate Investing Real Estate Financing
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Posted by Mike V on May 19, 2003 at 23:53:09:

Mr. Garcia,

Thank you for your feedback. I agree your Lender’s Workshop is a perfect idea. I’d like to attend, but this time around I won’t be able to afford it. (Due to travel and lodging costs coming from Wisconsin. Anyway… just paid for insurance on a 2nd duplex that I’m closing on this Thursday as well. (no money down) Ironically, financing comes through the Mortgage Broker I mentioned in my earlier post – but I also agree that he is NOT knowledgable on the subject of WLOC. In fact, he didn’t have an answer when I asked him, “If it’s that hard, why are so many people able to do it?”

I will have to start small, probably with flips through assignments, and later (with money coming in) be able to attend your workshop. I’ve known about it for quite some time but when you don’t have money to pay anything but rent and bills, it’s hard. Thing is, I know I could be doing better if I got out there. But at this point, there really isn’t a way to swing it – no exaggeration.

I heard both of your radio show broadcasts on CREONLINE and will try the business plan approach (at least the idea) and go to smaller banks (portfolio lenders). I have an understanding of business plans via my background with a BA in Accounting, another BA in Business Administration, and a Minor in Economics.

Buy my true path of interest and determination is real estate. Heck, today when I was at the Finance company’s offices, I was sitting down with 4 other people who were all multi-millionaires and ALL of them made their money through real estate. Just proves I’m on the right track now!

I look forward to getting to your workshop, and hey, at least I’ll be qualified via having at least two deals in my pocket by that time. :slight_smile:

Have a great day!

Mike V.

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“Working Lines of Credit”??? - Posted by Mike V

Posted by Mike V on May 16, 2003 at 15:14:29:

Is getting a ?working line of credit? harder than it looks?

Here?s what I mean (and am asking)?

I called a mortgage broker that is known for being creative, but maybe not as creative as you guys (hahaha) and asked about how to get a working line of credit. He told me that?s a good idea but they all want it based on ?equity?. I explained to him that I wasn?t talking about an equity line of credit but rather a working line to draw on. He said that was like a construction loan, but the lenders will want to get copies of the rehab bids and tack on all kinds of other stipulations and documentation that they will want to see, then they?ll want you to put up equity in another property anyway just to get the working line. It?s just what they require to make them feel more safe because so many have been burned by fraud recently.

Also, he mentioned that even going after small banks with the idea that they are more flexible and want the business ? is not going to make it better because they are all still under federal regulations that won?t permit such low-document loans or lines of credit. Business plan? He said that?s a great idea, but they still won?t do it due to the tightening federal regulations.

I didn?t know what to say to him about that because I just don?t really know. All I do know is what I have read here, but simply telling him that ?some guy on CREONLINE said I could do it?, wouldn?t really win anyone over, nor convince that it would work.

So I need real meat and potatoes facts and evidence in order to find out what to do. No more theory based on what someone did 30 years ago. I need to know what to do NOW. I have found many rehab potentials but can?t get the working line of credit yet. How do I do that?

Anyone with real, hard facts, please respond. And please don?t just tell me that I should just not listen to this guy (as though that tells me how to do this stuff) ? he wants to help me, but he?s in the business and has worked with lenders for quite some time. Perhaps he just doesn?t know about these things ? I need to find someone out here who does.

Thanks in advance.

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Re: “Working Lines of Credit”??? - Posted by R Walden

Posted by R Walden on May 18, 2003 at 12:39:28:

Mike, I went to a locally owned bank, filled out an application for a secured line of credit and was approved for 54,000, this is secured by my residence. Then went to another bank and applied for unsecured line and was approved for 40k, it is not difficult to do, just go ask them, the application is kind of long, but not difficult to fill out, the banker will actually fill it out for you if you ask them to. The questions are in regard to your net worth, job time, and credit rating. Try it, its not that hard.

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Re: “Working Lines of Credit”??? - Posted by Ed Garcia

Posted by Ed Garcia on May 17, 2003 at 24:33:52:

Mike,

No pun against your local Mortgage Broker but he’s not qualified to discuss a WLOC.

The financing range for your average Mortgage Broker is 1 to 4 units.

The reason being is because that’s their market place and what they are geared to do.

I’m sorry to tell you but based on what your mortgage broker said, it’s obvious that your Mortgage Broker doesn’t have a clue.

Mark, you’re pretty adamant that you don’t want any rhetoric but only valued, up to date information.

It sounds to me like you’re ready for the Lenders Workshop. Everything that you’re asking for is exactly what we do and teach at the workshop.

At this Workshop I will have 10 Alumni. These are investors who have already paid to attend the workshop and felt it was worthwhile to attend again. Alumni do not have to pay a second time for attending. But even though they don’t pay for the workshop, they still have to pay their Air fare, Hotel, and food to attend. So they must feel that it’s worth it to attend a second time.

We’ll have Jim Rayner, from Massachusetts, there if his health permits. Jim will tell you how he has made $2000,000 since attending his first workshop.

Zack Wiest, is 26 years old from PA and since acquiring his $200,000 WLOC (Working Line Of Credit) and bought and sold over 55 houses last year.

Brannon Fain, from Ga. Has a few WLOC for $500,000, and to be honest Mike, I don’t know how many deals Brannon has done since acquiring his credit lines.

Charles Fuller from Texas. Charles has $1000,000 WLOC and bought and sold over 80 houses last year. Charles is coming back because he had decided that he needed to learn more about Commercial properties.

There you have it, just a few Investors who have attended the Lenders Workshop and who have received WLOC.

These investor’s testimonials are living proof that we know what we’re doing.

Sorry I went into a promo. But what you’re seeking to learn is the reason for the Lenders Workshop.

Ed Garcia