Posted by Ed Garcia on December 29, 2000 at 09:59:35:
Before I answer your question I’d like to thank you for helping with Omo Oba’s post the other day. I was in a hurry, but felt I should have been a little more explicit then I was.
Sue, I’d be more than happy to help you with your plan. Write your plan, as you would have, modifying it to accommodate your subject matter, the topic being, Credit line for real-estate investing. The main points to demonstrate to the bank are as follows.
Your usage of the line— meaning on how you intend to use the line.
Your escape mechanism—here you are going to show them that you will be purchasing the property in most cases for resale, however in the event the property should not sell, the property will rent with a positive cash flow, and that you already have a mortgage co. who will give you permanent financing. This will assure the bank that the deals will not get stuck on the line.
Sue, everything else we put in the plan will be selling you, your expertise and ability to pull off your feat. I’m in the process of developing an outline for a business plan just for real-estate investors. As you know I can only do an out line, which would have to be modified to each investor, due to each investor has different circumstances and qualifications and therefore their requested loan would be done accordingly. I am privately e-mailing you the format that I use and modify for whatever specific use I need.