Need money and credit line - Posted by kirby newton jr

Posted by kirby newton on January 11, 2001 at 11:44:35:


So you will know, I am searching for funding for two of my buddies who are real estate investors. One has 35 units (bought on a $1.5million line of credit). The other has 5 units bought through traditional bank financing. Both are A credits with six figure incomes from their regular jobs. One owns a pallet company here in Charlotte that does $1.5million per year. The other is working for an upscale cabinet company (that he founded and then sold last year).

This is an FSBO. They have an offer on the house (to buy it from them) of $90k after they do some fix up of about $3k. That is why they want to get it quick. So this will be a flip, if they can buy it. This is a fast selling neighborhood of older homes in Charlotte. With minor fix up, many are selling well over purchase price. Investor competition is fierce and homes are going to those who can offer and close quickly. That is what gives rise to my second question about some sort of credit line. They want to make an offer today if I can find them some money. Owner has given them 48hours.

Thanks again for the help!


Need money and credit line - Posted by kirby newton jr

Posted by kirby newton jr on January 11, 2001 at 10:46:12:


I am in Charlotte, NC and am looking for money to buy a property this week. Looking for close ASAP but 2 weeks be ok. Asking and tax appraisal is $75k. Offer is $60k. How can I get 100% financing on offer price. Am planning on flipping this property after fix up. Does anyone really lend of rehabbed value?

Also, am looking to buy several houses over the next few months. How can I establish a credit line so I don’t have to go through the hassle at the bank and wait 6 weeks to close each time?

If can’t get credit line, what are your terms on hard money?

Thanks for the info!


Re: Need money and credit line - Posted by Ed Garcia

Posted by Ed Garcia on January 11, 2001 at 11:14:33:


Lets look at your deal. Lets say you bought it the way you wanted to for $60,000. Now you are going to put it back on the market for $75,000.

Kerby, you just grinded the guy down and bought it for $60,000, do you think the next buyer may not ask for some discount.

Let’s say the next buyer agrees to buy it for $70,000.and it takes you 2 months to sell it, and 2 months to close.

Sale Price: $70,000
Sales Com. @ 6% is $4,200
Loan Cost for you original $60,000 loan to purchase the house 2 points + cost = $3,000
Holding cost for holding the property for 4 months = $2,000.
And when you pay off your loan of $60,000 here’s what left for profit.

Now Kerby this is just a fast run down with no fix up cost because the house is PERFECT.


  • 4,200
  • 3,000
  • 2,000

Net $800 Thank God, you didn’t have to fix it up.

Kerby this is just a ball park scenario . My suggestion is either Flip it NOW, and make yourself a fast $5,000 or so., Or, go on to the next deal. But the profit in this deal does not warrant financing and exposing your good credit.

Ed Garcia