Re: Question for Mr. Garcia - Posted by Ed Garcia
Posted by Ed Garcia on January 10, 2001 at 21:26:21:
I’d be curious to see how you view a deal. Hard Money lenders usually go up to 65% APV. Ruth the idea of taking your aunt on as a partner is fine. There are loans available today that are stated income, NIQ, NIV, etc. so her income can be worked with.
Ruth, I want you to be careful not to hurt your aunt. I know that sometimes when we work a deal we think that we structured it so nothing can go wrong. Ruth, I won’t kid you, I know how to structure a deal that’s bullet proof, but most investors are blinded buy potential profit and get lackadaisical and greedy, and miss valuable safety checks when doing a deal.
Your aunt is giving you an opportunity to be a real-estate investor, she is trusting, that you know what you’re doing and counting on you make it all work Ruth, I can tell that you’re new, by the way you’ve asked the questions in this post. I want you to know that if you are uncertain of any of your deals, you can call me, and I will give you a second opinion. For now, your arrangement should be 50/50 split. She’s taking all of the risk, you’ve got nothing to lose.