Posted by Ed Garcia on September 21, 2003 at 10:24:47:
Dave,
I?m sorry, but for me it impossible to answer your questions with out spending a great deal of time and having the information on you personally.
This business is not a one size fits all, nor are the banks all in harmony to do process or function like robots.
What I teach requires, looking for and identifying a motivated bank, developing a relationship with a bank, understanding their requirements and compensations of those requirements. For example in your case you ask, if you didn?t have ownership could you still demonstrate to the bank that you have the experience or an experience level that would satisfy the bank.
The answer is of course; Yes, it would be a no brainer if the properties were in your name because then your experience would be unquestionable. However that doesn?t take away the fact that even though the properties were not vested in your name, you weren?t responsible for the acquisitions of the property. There are many ways you can set it up or demonstrated to the bank your involvement with the acquisitions.
You could have your investor set up an LLC with you as an officer of the company. You could build a file of the acquisitions as you purchasing them, showing the participating income you received from the acquisitions, to name a few.
Dave, I?m sorry I can?t spend more time with your questions and hope I have given you some food for thought.
ED … best proof of experience for a WLOC? - Posted by Dave Holls
Posted by Dave Holls on September 19, 2003 at 12:57:58:
Hi ED, I have talked with you in the past about a number of subjects. I wanted to get some quick advice about WLOC’s. I am a real estate agent and would like to start doing flips (rehab or not), and want to use other people’s money! I know you have your seminar on getting banks to loan money, and I would like to attend - unfortunately up 'till now I have been unable to.
I know one of the hurdles for being approved for the WLOC is experience. I know there are many ways around this, (similar experience, current ownerships, etc.) but I wanted to see how I can use the current situation I am getting involved in to benefit me when it comes to approaching a bank.
The County I live in is having their annual tax foreclosed property auction. I know an investor who is going to attend. I have worked with him in the past and he is open to working together on this. I do not have the money, but I have the time, energy and knowledge to do all the work involved - before & after. My goal is to have him buy the property, and I would be involved with him in the rehab, if necessary, and re-sale of the property. What I wanted to know is how do I set this up, so I can show the bank that I have experience in doing these flips after we are done? How many should I be involved in? Do I need ownership, or is just being involved enough? If I don’t have ownership, how do I then prove I was involved? Basically I am asking how do I use this opportunity to benefit me later on when I want to approach a bank and do this on my own with a WLOC? I’m not really asking you to set up the whole thing for me, afterall that’s what your class is for. I just want to make sure I set this up right so I can use this opportunity later on. I don’t want to go through the whole thing only to find out I didn’t set it up right and the banks won’t use it.
I know you’re busy, so I appreciate your help. The Auctions are next week, starting September 22. Obviously final ownership transfer won’t happen for a short time, but I wanted to get some advice from you now. Thanks!