Proceedure to Obtain WLOC - Posted by Marc NJ

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.

Ed Garcia

Proceedure to Obtain WLOC - Posted by Marc NJ

Posted by Marc NJ on July 28, 2002 at 20:48:51:

Can someone give me the basic proceedure to obtain a working line of credit. I know it starts with a business plan, after that I just dont have a clue.
My company has done a few successful rehabs and a couple of flips (wholesale).
The points and other fees I’ve paid to hard money lenders and other institutions are quite outrageous. A WLOC seems to be the way to go, so if any one would help, I would be very greatful.
My fico score is in the high 600s and I personally make 95k / yr. That does not include profits from investments.

Marc F.
Statewide Property Solutions
609-597-2272 or 609-713-6726

Re: Proceedure to Obtain WLOC - Posted by Ed Garcia

Posted by Ed Garcia on July 29, 2002 at 11:25:27:


Zack, has given you an answer that worked for him.

Marc, getting a WLOC is not just about procedure. It’s about knowing what the hell you’re doing.

How long have you been in the business or been an investor?

How many deals are you currently doing?

How many deals do you think you’ll be able to do once you have a WLOC?

Why do you feel you need a WLOC?

What do you think it will accomplish for you?

How do you plan to use it?

What criteria do you plan to do in using your credit line and how would you want it set up?

What are your exit strategies?

Marc, each investor is different with different circumstances. Doing a Business Plan and structuring a WLOC, is not a one size fits all.

I can’t tell you how many times I modify Business Plans and presentations, and compensate their individual financial condition, to accommodate each investor and potential Bank or lender.

Sorry, that I can’t give you a carved in stone answer, but I’m going to have to suggest for you to answer some of the questions that I asked above, to see if you even warrant a WLOC. It’s not for everybody. If it were, I wouldn’t have to be teaching investors how to get it.

It’s for the serious investor who invests in Real-estate as a business, not a hobby. An investor who invests from time to time is not a good candidate for a WLOC.

Ed Garcia

Re: Proceedure to Obtain WLOC - Posted by Zack W

Posted by Zack W on July 28, 2002 at 22:06:27:


Step 1 - Call Ed Garcia

Step 2 - Sign up for the lenders workshop

Step 3 - Attend lenders workshop

Step 4 - Take advantage of the 6 month mentorship

I did just that and I secured a 200k line 70% LTV prime plus 2. I just turned 26 years old and have only been in the business for little over a year.

Zack W

Heres my back round - Posted by MarcNJ

Posted by MarcNJ on July 29, 2002 at 20:49:24:

Ed, I’ve been seriously investing since Jan.2002. I’ve completed 4 rehabs and wholesaled 2 properties.Before 02’ I have completed 2 rehabs which took some time to finish the deals.
My goals are to complete 1 rehab per month next year.Right now I have a 4 man/ 1 woman team which work 6 days a week rehabbing and reselling properties.(excluding me). I work 7 days a week as a aircraft mechanic and would like to leave my current employment by the end of 03’ or sooner.
The WLOC would help me be more competitive in my market, being able to save on hard money lender points and institutional garbage fees. Also, in being able to write a check for a subject to’s equity.
WLOC just seems to make deals or offers move much smoother and quicker.
Eventually I will sign up for your workshop, but that is not an option at this time, due to lack of manpower at my job. After the begining of the year would be better time, so for now I will learn what I can from this web site.Thanks for your time!
Marc Friedman

Re: Proceedure to Obtain WLOC - Posted by Cassity

Posted by Cassity on May 27, 2006 at 15:23:45:

Read your old post. I was wondering how your WLOC/business has grown since this time? How you been able to increase your line? Improved the terms?


Re: Proceedure to Obtain WLOC - Posted by David G (OR)

Posted by David G (OR) on July 29, 2002 at 03:13:02:

Sounds like good advice.

Could you tell us about your credit score? Stable employment? Income? Past RE investments?

What would you say were the top three ‘selling’ points to you getting the WLOC?

David G.

Re: Heres my back round - Posted by Jennifer

Posted by Jennifer on December 27, 2002 at 12:38:24:


I have a question for you… I too plan on rehabbing properties to sell for profit. What has your experience been with the self employment tax and the capital gains tax? If I were to form an L.L.C. company, that would eliminate the self employment tax, but what about capital gains? I want to invest, but not so the gov. can take half of my profits!! I know each state is different, I was just curious what your experiences have been.