Question About Ed Garcia's Lending Workshop - Posted by JoninIowa

Posted by JonInIowa on March 08, 2006 at 17:45:26:

Thanks for the reply John,

As far as the workshop goes I just wanted to know if I could use those same techniques that are taught, or if my BK would hold me back.


Question About Ed Garcia’s Lending Workshop - Posted by JoninIowa

Posted by JoninIowa on March 07, 2006 at 20:34:45:

Would this course be any good for someone who is only about a year out of BK7?

Is there any hope as far as getting financing from an institution for someone in my situation? Im working on repairing my credit, done a couple small note deals, and would like to do alot more. What kind of chances do I have to obtain some sort of financing for either rehabs or (especially) note deals?

Thank You

Re: Question About Ed Garcia’s Lending Workshop - Posted by Ed Garcia

Posted by Ed Garcia on March 09, 2006 at 09:35:03:


Let me see if I can shed some light on your question Jon.

First of there are going to be four types of investors attend my workshop.

  1. Bad credit, no money.
  2. Bad credit, some money.
  3. Good credit, no money.
  4. Good credit, money.

Jon, I just covered everybody. Everybody in the room will fall under one of these categories.

Let?s take the worst case scenario on the totem pole, bad credit no money. I can?t take this borrower to the bank, they?d throw him out, so why would send him there to embarrass him. This borrower may not be a bad guy. They may be a person whose credit got out of control and now they?ve learned their lesson, they?ve gone through a divorce, lost a job, got hurt or disables, any number of reasons could have gotten them off track. They?re embarrassed about it and like an Ostrich; they stick their head in a hole and hope the problem goes away. It won?t go away; we have to make it go away. How we make it go away is by learning how to find lender who will make loans with credit problems. We then learn how to structure deals that accommodate those lenders criteria and start doing deals. We now begin making money and simultaneously, at the same time, we can go to a website like and work on cleaning up our credit.

Yes were going to pay higher interest and more points for our loans. But we?ll be replacing old bad credit with new good credit and within 18 months to 2 years we can become a desirable borrower and a candidate for an alternative financing as well as a Working Line Of Credit.

Why the Workshop,

The Workshop was designed by Terry Vaughan and myself to take experienced Real-estate investors to their next level.

Conceptually it was to either teach them how to acquire financing to do multiple deals, or go to their next level to do Commercial or larger deals. It was for investors whose problem wasn?t in finding deals, but was finding money to do deals.

We teach deal structuring, analyzing of Commercial acquisitions, Commercial financing including Commercial credit lines, How to do a Business Plan, and the list goes on.

The information in the workshop is hypothetical; it has to be for the benefit of teaching. We have to use examples that validate the points that we?re trying to teach.

However after the workshop, it?s one on one. We mentor you for 6 months, and during that period of time, we talk about where you?re at, where you want to go, and what it?s going to take to get you there. This workshop is not out of a text book that may or may not be applicable to you but is tailored to the individual and that?s why it?s so successful.

Ed Garcia

Re: Question About Ed Garcia’s Lending Workshop - Posted by John Corey

Posted by John Corey on March 08, 2006 at 24:17:21:


I am not sure what the question really has to do with the workshop. I am a workshop alumni.

  1. It is hard to find useful funding for note deals. Most lenders do not lend on notes or will be very picky about what they might consider.

  2. Track record makes a big difference to banks who provide working lines of credit. They also look at the assets.

  3. If the rehab deals are really solid you can find hard money. This implies a conservative LTV so expect 65% of as-is appraised value at the bottom and maybe up to 70%-75% LTV using ARV if you have some credit, some cash, some experience, or you find a local HML who likes the specific deal. One HML that advertises here expects a 620 credit score for their HM when lending on ARV (plus they escrow repair costs).

So, you can grow your business and will find funding for some of the things you want to do. You will have to conform or otherwise make the deal attractive to the lender.

John Corey