I thought I would share a story with you from my experience with your financing seminar [How to Get Lenders Fighting to Give You Money]. I attended the seminar this past summer in Atlanta. I was in a serious financial situation, not due to my business going bad but due to my reliance on a single lender.
To make a long story short, they capped my loans without telling me this. My credit is A+ and all of my deals were working, so I knew it was nothing I did wrong.
I had to make some quick decisions and one of the first was to use some hard money lenders to at least stay up and floating. I then came across the seminar information and decided I had nothing to lose. I was somewhat disappointed at first and noted that on the site.
I immediately got calls from Ed, and we discussed my concerns privately. After we straightened things out, we reviewed my business plan, and I set out on my journey.
This is where the success story begins. I have learned in business that sometimes one small bit of advice can change the whole complexion of your operations. Of all of the things I heard at the seminar, there was only one thing that I decided to pursue.
That was to go after small lenders in my area. What a change! The objectives in my business plan have now had to be altered due to the amount of financing I now have available to me.
I obtained a $250,000 working line of capital from the first lender I went to. Their stipulations for the use of the line did not match my criteria as closely as I wanted but, what the heck. We were off and running.
I went to the second lender and hit a home run. I found them to be an equity-based lender, and they did not even pull a credit report. They did not give me a line, but they will finance 100% of the purchase and rehab cost as long as that total cost does not exceed 80% LTV of the fixed up value (retail sale price).
This lender does not put ANY limit on the number of loans and they do not cap me at any dollar amount. As long as each deal works they will make as many loans as I want to take.
The third lender I went to, I played around with. I used the other two lenders to pique their interest and this lender is now negotiating interest rates and terms with me, or should I say I am negotiating them with him. They will only allow me to have $500,000 in total loans though. I think I can live with that!
I then followed that one up with my most current lender success. I sold a house to another investor and we shared some information about our business. He shared with me that a lender, IN MY HOME TOWN, that I did not even think to approach, was starting a pilot program.
I found out today that they are going to give me a $250,000 line of credit and each draw on this line can be converted to a conventional loan at any time. They also do not put any limits on number or dollar amounts of loans.
Finally, I also have an investor, who happens to be a friend, who has made a $100,000 investment in my company.
Every one of these lenders and/or investors is lending to my company, and I have no personal guarantees on any of them. Each lender is using the property as the collateral. I can now start clearing some of the personal debt I have.
All of this has happened since I returned in June from the “Lenders” Workshop. My business plan has been altered significantly.
Originally, I planned on doing 12 rehabs in 2002 and building 4 houses. In the past three months, I have already purchased 6 rehab properties and three lots that we will be starting construction on in January.
In conclusion, a single bit of advice at the seminar has skyrocketed the amount of business I can now do. I now literally have no limit to the amount of “CASH” available to do business. Terry, you were right when you said start thinking big. I now have a new problem. There may not be enough properties to buy!
Projected earnings for the first quarter 2002 is well over $100,000. Life is good.