Posted by Ed Garcia on July 30, 2002 at 10:38:48:
Thank you for the additional information. A borrower who would warrant a WLOC would of course be one who would do enough deals to use it.
Many investors feel that if they had the line, they could do more deals. Although there is a lot of truth to that for most investors, you still have to demonstrate the need for the WLOC.
An investor who is doing 2 deals a year could not do that. But one with your goals is a different story. One your shortcomings is going to be the short period time you’ve been in the business. There could be compensations or trade offs depending on your financial strengths or your ability to sell that bank on your experience. You could be a candidate for either a small starter line, or a temporary streamline way of borrowing that could be temporarily used until you pick up enough volume to warrant a WLOC.
It could also give you an opportunity to build and establish a relationship with a local bank, which I always encourage.
This business is no different than any other, you have to pay your do’s to establish yourself and build a reputation. WLOC’s is not for the novelist investor. It’s for the investor who does a respectable amount of deals each year that would justify it’s usage.