Posted by Bill Biggs on September 04, 2003 at 10:13:19:
Ed,
How soon will you be accepting students?
I looked at the link on the BB site, and it still talks to June 2003. I, too, am interested in attending.
B2
How to Get Lenders Fighting to Give You Money - Posted by Jamie Jackson
Posted by Jamie Jackson on August 27, 2003 at 07:49:52:
Ed
Is there a book or audio tapes of your seminars on lender financing? If so could you let me know where to locate them. Thanks for your help.
Jamie
Re: How to Get Lenders Fighting to Give You Money - Posted by Ed Garcia
Posted by Ed Garcia on August 27, 2003 at 12:21:28:
Jamie,
I get this request all the time and some day I?m going to have to figure out a way I can feel comfortable teaching in this manner.
Let me give you an example. Just yesterday I spent some time with an Investor who attended my workshop and felt that he had enough of an education on how to work the bank, do his Business Plan because we gave him examples in the workbook, and was ready to go.
I can?t tell you how confident this investor was. His credit was impeccable, and he was going to go out and asking for $2000,000. As a matter of fact he did an excellent job with his Business Plan, he had carefully listened to my previous workshop attendees who have already obtained a WLOC ?Working Line Of Credit?, done his home work, had several exit strategies as I teach, and thought he was ready to go.
He wasn?t even close.
He was asking for $2000,000 but if you analyzed his Business Plan, his projections were to do 2 houses a month at the average price range of $180,000. Now in his area, $180,000 is affordable living, so we can make that work, however if he were to do 2 houses a month, he would have to have between 4 and 5 deals on the line at all times. That would be in the neighborhood of $720,000 to $900,000 not $2000,000. So he was already asking way more then he could justify using. Remember the bank has ear marked the funds for the borrower and if the borrower doesn?t utilize the funds the bank loses. They could be using those funds on another borrower to make money so they watch credit lines very closely.
In addition to now making the borrower realize that he doesn?t need $2000,000 but between $720,000 and $900,000, now remember, with a credit line you can roll it every 90 to 120 days so with $720,000 you could finance between $2,160,000 and $2,880,000 annually and with $900,000 you could finance between $2,700,000 and $3,600,000 annually so that should easily work. I showed him that in his current financial position he could not show debt servicing a 720K to $900,000 loan and was lacking CASH FLOW.
Now for me, this is a common problem, because most RE investors or self employed borrowers do not show all of their income. So I have other ways to restructure their finances to show liquidly in order to cash flow.
Jaime, each borrower is different with different circumstances, so I?m constantly modifying the circumstances of each investor to meet qualifying for a given credit line. The investor wouldn?t have that ability to do that on their own because they wouldn?t know how, and therefore would have to deal with a bank at a disadvantage.
When our conversation ended yesterday, my student not only has a new game plan, but a better understanding of what he?s doing. I know that when I get him his WLOC, I?ve created a monster because he?ll now be armed to work with banks and do more deals.
I?m sorry to say Jaime, that knowledge without the experience on how to properly utilize that knowledge can also be a waste. It puts us back into trial and error as well as makes us lose our confidence, and that?s what Terry and I are trying to eliminate. Trial and error is definitely a good teacher, but it can also be an expensive one. It?s much cheaper to pay for a course that works and make up the cost of that course on your next deal. Losing a good deal is much more costly then any course.
So no, we don?t have a written course at this time, and I hope that this answer explains why we haven?t a written course.
Ed Garcia
Re: How to Get Lenders Fighting to Give You Money - Posted by Steve in San Fran
Posted by Steve in San Fran on September 02, 2003 at 22:56:58:
Jamie,
I attended Ed & Terry’s last seminar and believe they’re correct in not having it available on books/tape. The seminar content itself certainly is valuable; however, the real value comes from two things in my opinion:
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being immersed in real estate in general and the financial aspects in particular for 3 long days, and
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the personalized post-seminar consulting available from Ed and Terry.
I don’t believe there’s any way to really duplicate the live experience on books/tape. We covered a ton of material that’s not in the seminar handouts. We had time to pick the brains of prior attendees who had secured their WLOC’s and were kind enough to share their experience with us–both formally and informally. We also stayed up until about 3 a.m. one night analyzing live deals from attendees. You just cannot duplicate this from books & tapes.
My other reason for jumping in is that I just sent Ed my business plan and supporting materials for review. I probably made the same mistake as the investor Ed talks about above – and then some. Getting a great ROI on the investment in the seminar requires making something happen for yourself in the real world. The current process maximizes your chances to take a major step forward.
Best of luck to you!
Re: How to Get Lenders Fighting to Give You Money - Posted by Jamie Jackson
Posted by Jamie Jackson on August 28, 2003 at 21:11:28:
Ed
I’m not sure you will read this follow up but I hope you do.
I just want to say “Thank You” for taking the time to explain your “No”. You could have easily just left it at that. This thoughtful response has even more so convinced me that I must attend your next seminar. Do you have a date set for 2004 yet? Again Thanks for your time.
Sincerely
Jamie Jackson
Re: How to Get Lenders Fighting to Give You Money - Posted by Rob R
Posted by Rob R on August 28, 2003 at 21:06:05:
Can you tell us when the next live seminar will be? Thanks.
Re: How to Get Lenders Fighting to Give You Money - Posted by Ed Garcia
Posted by Ed Garcia on August 29, 2003 at 09:35:36:
Jamie,
I just closed the deal this week with the hotel to do the next workshop at the Ontario Airport Marriott in Ontario California. The dates are November 21st, 22nd and 23rd.
Until now we couldn?t announce our next workshop until we had one.
Ed Garcia