Posted by Ed Garcia on March 04, 2001 at 15:01:27:
Mark,
I’ve been thinking about your post and, feel bad that I was so direct. Mark, I’m here in California, at your convenience feel free to call me at (909) 944-0199 and let’s talk.
Ed Garcia
How would you handle this? - Posted by Mark
Posted by Mark on March 03, 2001 at 01:19:13:
A friend and I have formed a Calif. C corp. for the purpose of RE investing. We are interested in pursing small commercial office buildings (40,000 sq ft max). My friend is currently a director in charge of RE for a large hi-tech firm. He has solid management experience in this area. My background is marketing also in the hi-tech industry.
Given our backgrounds and RE market focus, what is the best strategy for approaching lenders remembering that we want to acquire properties as a corporation. In addition to our business plan, I know that we must also show them a strong exit strategy for the properties. What else will they want to see and what other questions might they ask?
Thank you and God bless,
Mark
Re: How would you handle this? - Posted by Ed Garcia
Posted by Ed Garcia on March 03, 2001 at 10:29:11:
Mark,
I think you’re putting the cart before the horse, and are concerned about a factor that is unimportant in t he scheme of things. I’ve seen this post before and it appears that you are spending more time being concerned on how you’re going to structure your organization, than you are about finding and doing deals.
It reminds me of the guy who isn’t making any money, but is concerned about how much taxes he might have to pay if he does.
My suggestion is to get yourself a good Real-estate CPA and Attorney, who will be costly, but will help you structure your financial empire. As far as lenders are concerned, you and your partner are going to have to sign with personal guarantees until your new organization has established it self. If you want to go hard money, which wouldn’t make sense just to shun the personal liability, especially if your deals are moneymakers, then come to me and I’ll do it. Mark, I’ve been in the business for over 30 years and have done tons of deals in my name, and haven’t lost one night of sleep because of it.
Personally I think you’re fooling with this as a form of procrastination. There is nothing wrong with trying to protect yourself, but you have to understand that a new entity is like an 18-year-old kid with no credit, no one wants to lend to them.
Ed Garcia