I have analyzed a bunch of deals now, and now I will be ready to make my first purchase in the next 6 months when I see something that fits what I am looking for. 

When I have the down payment, should I reach out to lenders so I can pre-approved for a certain amount, or will that depend on the P&L from the property? I want to be able to pounce when I see something, but maybe that's what an LOI is for?

My goal is to buy several units until have enough equity to be able to purchase larger property, with larger cash flow, that's under management. 

Well, having a pre-approval from your broker helps you look a lot better.

Only advice I'd have is if you get approved to $X and you're offering 90%*$X, I'd have the pre-approval show that amount.  Broker can generate those easily and helps negotiating.

Oh ya, I wouldn't want to be preapproved for $200K, offer $175k, and they see I can get $200K so they hold out. I'm trying to figure out the next steps now that I know how to analyze a deal, and what I am looking for. 

If your going for a commercial loan there really isn't a preapproval. If you are going for residential, yes. It is better to lock in financing early as possible.

@Erickson Sainval I’ll be going for multi-family units.

@Ryan Chaif

If  you're not ready to do anything for 6 months, you should speak to a couple mortgage brokers, but I wouldn't go through the hassle of getting pre-approved just yet.  No need to pull credit, bank statements and income docs only to have to do it again in 4 months when you're ready to get pre-approved.  Talk to some brokers, get a good feel for the one you want to move forward with and then stay in the market until you're ready to go.  Before you start engaging Realtors, get with your broker and find out the next steps.  He may even have a Realtor that he can recommend.

@Stephanie P. Before you get pre- approved should you tell the broker that its going to be a investment property?

Originally posted by @Yenika Mac :

@Stephanie P. Before you get pre- approved should you tell the broker that its going to be a investment property?

Of course.  They should ask you the purpose of the loan and a hundred other questions.  They should be asking you about your plans and how you want this whole real estate investing career to go. It shouldn't be just a one off type  conversation.  Planning for the first one is important to have the next few properties ready to go.

Thanks Stephanie. Im trying to learn the right things to say when applying to financing and talking to a broker. When I use a LLC to apply for finance to purchase. What are the requirements to secure a lone? And would it show on my credit file that its a lone or a home purchase under my name? Just to add. I have a W2 job

Originally posted by @Yenika Mac :

Thanks Stephanie. Im trying to learn the right things to say when applying to financing and talking to a broker. When I use a LLC to apply for finance to purchase. What are the requirements to secure a lone? And would it show on my credit file that its a lone or a home purchase under my name? Just to add. I have a W2 job

Yenika

The broker should be able to walk you through the steps you need to take. You're new. They'll tell you if you qualify and if you don't right now, they should tell you what to do to get there.

Stephanie