Mr. Garcia.....about pulling money out on c;losing - Posted by mike

Posted by Ed Garcia on December 01, 2000 at 18:07:33:


Give me a call at (909) 944-0199.

Ed Garcia

Mr. Garcia…about pulling money out on c;losing - Posted by mike

Posted by mike on November 30, 2000 at 22:57:47:

…I have been reading this and the main formum now for months and I keep seeing things like “loan fraud” etc when it comes to cash back at closing?

I am really puzzled as to the correct way to pull money out legally at closing. After all is this not the bread and butter of creative investing, “make you money when you buy not when you sell”?

I appreciate that equity could be left in the property hence " I made my money when I bought", but just how is a guy supposed to support a 10k per month habit…[ lifestyle, not a monkey…LOL ]

I get nervous each time a mortgage is written that includes seller concessions for a few bucks etc.

So again I am wondering, what is the correct way to pocket some dead presidents at the closing table…

Re: Mr.Garcia…about pulling money out on c;losing - Posted by Ed Garcia

Posted by Ed Garcia on December 01, 2000 at 10:19:09:


Yes, making your money on the buy is paramount as a real-estate investor, ill regardless
of the term Creative real-estate. The term “Creative Real-estate” was coined, in doing no money down deals, or deals not using your own money. Pulling cash out at the closing table is another matter. Mike, I don’t deal with or teach double escrowing or anything for that manner that would even smell like lender fraud.

Yes there are ways you can pull cash out legally at the closing table. But it requires lender participation, and primarily is done with portfolio lenders. Mortgage companies have to heavily document a loan verifying down payment and all aspects of the loan, because they sell it off to another investor. A portfolio lender can work under more lax conditions. I can talk to my banker and he will work with me on my LTV and seasoning for that matter. I can tell him that I want to finance at 75% LTV of appraised value and get that understanding going in. Actually, the problem with cash out at the closing table is that you don’t have seasoning. You knew when you purchased the property, that you have a pre-conditioned PROFIT.

Now don’t get me wrong Mike. When you go to a portfolio lender they will tell you that their criteria is just as stringent as the lenders down the street. But as they work with you, they will begin to loosen up, because they become familiar with you and your business activities. The Bank knows going in, that the property is valued for more than the purchase price, they’re just setting a policy for their due-course of business, but can bend policy on a case-by-case basis.

Mike, I can’t believe that I have seen participants of Creonline discuss so freely on the net, in front of god and everyone, how they structure a deal with lender fraud. LOL
The only thing I’m going to tell you on this matter, is that if done properly, you can expense out profit going in. In Your case, with the $10,000 a month monkey on your back, LOL you better look for bigger deals and do flips. If you tie up a large commercial deal and structure it right, you would be shocked how much money you can make.

Ed Garcia

Re: Mr.Garcia…about pulling money out on c;losing - Posted by Mike

Posted by Mike on December 01, 2000 at 14:27:40:

Very much looking forward to those ‘larger deals’…

Re: Mr.Garcia…about pulling money out on c;losing - Posted by jdch

Posted by jdch on December 01, 2000 at 13:33:42:

Mr. Garcia, I have located a 126 unit apt complex 2 miles from my house. The problem is I only own 19 sfh and deal with smaller banks. Can you help me on finding funding for this. I have a decent net worth, but not a lot of cash. Any help would be appreciated.