Ed Garcia - Question RE: Seminar - Posted by Frank (Ohio)

Posted by Ed Garcia on April 02, 2002 at 10:15:49:


What I want to know is why are you at 90% LTV?

I hope for your sake that you made a mistake when you made the statement and that what you meant is that you’re at 90% of purchase price which is about at least 70% LTV of market. If not you are in trouble. One of the biggest investors who participates on this board is a man by the name of Pete Julian. Pete, will buy 125 houses this year as he did last year at 50% LTV right there in Ohio. He has gone to my workshop and has WLOC’s in excess of 41/2 million.

So if you’re buying at 90% LTV as an investor in Ohio, you need a check up from the neck up.

Frank, Terry’s and my workshop can benefit every investor; because of the one on one mentoring I give them. But also because of the mentoring I personally give them, we are limited as to how many investors who can attend. That is one of the reasons we have excluded Newbies. We wanted to allow “INVESTORS” who would benefit the most.

Frank, if you truly are buying at 90% LTV then the writing is on the wall and you need to recognize it, and not think that your smarter then bankers and lenders. There is nothing wrong with leveraging if it’s done intelligently, has sufficient cash flow, and is in moderation with the rest of your real-estate portfolio. However, I’m still not talking about 90% LTV in Ohio which is an accident waiting for a place to happen.

By the way even though I live in California, I still own a 207,000 sq. ft. distribution warehouse in Columbus, and sold another one last year that was 189,000 sq. ft., so I know a little bit about Ohio.

My suggestion is for you to call me at your convenience, and we can discuss “Deal Structuring” as well as the Lenders Workshop. My number is (909) 944-0199.

Ed Garcia

Ed Garcia - Question RE: Seminar - Posted by Frank (Ohio)

Posted by Frank (Ohio) on April 02, 2002 at 07:29:50:

I would be more than happy to spend the money on whatever education necessary to boost my RE investing to a higher level but I have a few general concerns.

I have been told by some posters here to go to your seminar and achieve a large line of credit. That is exactly what I need to achieve my particular real estate goals and I would pay any reasonable amount of money to make that happen. I have 5 2-family and 3 3-family homes all in the Cleveland area. I live in one of the units. (in one of the 3 family homes). All of my properties are more or less at about 90% LTV and I tried and tried to get a line of credit on each and every one. The only one I had success with was the property that I live in. I don’t see how the banks will see me any differently than as being an agressive young investor who is “overleveraged” in there eyes although I have plenty of reserves to weather the worst storms and repairs. Even though I had excellent credit at the time (it has dropped in the last year due to a few new purchases which I have been told makes me look too leveraged and therefore drops my score…any truth to that?) the banks will not give me much in the way of credit lines. I used to have a 700 and now have about a 650 as far as credit score.

Can your seminar ultimately help me or is it geared to people in a different type of situation?