What first ? Deal or Money - Posted by Mac (E TX)

Posted by bashir on March 30, 2002 at 10:20:35:

Know what you’re going to do with the deal before you get involved in it, or you’ll increase your chances of it blowing up for lack of an exit strategy. If you’re going to flip it, do you have a buyers list? If you’re going to rehab and sell, do you have enough money(whether it be from a partner,yourself, or other businesses) to cover the cost of 6 months worth of holding the property. Back up cashflow is a must if you’re going to hold on to a property, if not then we’re just talking flips. You can tie a deal up and not know where the money will come from as long as it’s a good deal. If you(your deal) is profitable, then others want to make profits with you. People like to lend on good collateral. If what you want to do with the property is the exact opposite of what the numbers are telling you can happen, then there’s a chance there’s no deal. Look at your numbers first, if they tell you there’s a deal, then TIE IT UP! In short, IF your numbers look good TIE IT UP, and then find the money! Sellers with hot properties, and a high motivation to get rid of it, don’t wait on slow pokes!

Much Success!

What first ? Deal or Money - Posted by Mac (E TX)

Posted by Mac (E TX) on March 29, 2002 at 17:46:33:

Hello to all from east TX
What should you do first? Go find the deal, or get the funds lined up. I know I can get funds, but don’t know how fast. If I advertize with quick close, or close in 48 hours, should I not have a line of credit ready? Does it look bad to set up a line of credit and not use it for 2 or 3 months? Is there a company out there that will ok you for enough money to buy a house in a day? This may sound like a foolish question to those with experence, but it is something I thought I should know.
Thanks for the GREAT info on this site

Re: What first ? Deal or Money - Posted by GL(ON)

Posted by GL(ON) on March 31, 2002 at 14:35:57:

The most valuable thing you can do is establish a relationship with 2 or 3 banks.

Talk to the loan officer, president or whoever. Ask their advice (don’t take it). Give them your income statement, balance sheet, income tax forms, whatever they want. Explain that you are an investor and may need money quickly for investing purposes and that you wish to establish a relationship for that reason.

They can pre-approve you for a certain amount and when you need the money you can get it very easily.

If you have several banks on the string it gives you leverage when they try to stick you with extra points, higher interest, and fees at the last minute.

And every once in a while they get a new manager, or the bank gets in a jam, and they get very tight and nasty, call your loans due etc. At such times it is very satisfying to call your friend at the other bank and take all your business away from the jerk who thought he was putting you on the spot.

As time goes on you should call, write or drop in to your friend at the bank once a month. Send new financial statements every 6 months. If you do this you will never be one of the ones who comes here saying he finds great deals but can’t finance them.