Should I find funding before finding a property?

8 Replies

I have no money to put down on a deal...should I find funding before finding a deal?  Or the other way around?

Get your financing process started first. Establish a relationship with a hard money lender/broker who can help you get started.  Then when you find a property you'd like to make an offer on, you'll have the Proof of Funds letter available which accompanies your purchase offer.  Without this in place, you're offer to purchase will not be considered.

@Justin Tahilramani

If you would have read my profile you would know that I am brand new to the business...only been licensed since the end of June and still learning.  I haven't represented anyone yet. You don't have to be rude.

Always line up your buyers first. Imagine putting a car on Craigslist and every person who came to see it was just looking at cars... they would plan to buy one at some point, but just don't have the funds to move on yours...

Essentially, without your funding in place you are just kicking RE tires. As an agent, you have more freedom, so continue to look at everything you can and analyze them while you find your sweet spot because you aren't wasting anyone's time that way. While you build your skills, you should be speaking to your lenders to find out what they are looking for in a deal, such as, If I could find a 3/2 SFR with XX sq ft and a garage, is that something you would be interested in lending for. No? Oh, a 4-plex is where you think the money is. Okay, what about this type of thing... Once you know what they want through discussion and you know what you like through viewing tons of properties and running the numbers, you will be ready to make an offer on a property that you know aligns with you and your financial partner's interests.

We all started somewhere, and I am pretty sure that when we all started we had a lot of questions. I don't find the point of people being rude. If you have nothing good to say, might as well not say anything at all.

Hi @Sarah Schlueter

I think that it's a great plan if you can line up a buyer/investor and have funds lined up for when the right property comes along.

But sometimes, folks are leary of promising anything without seeing the deal. As you get rolling I am sure it will get easier, you will build up a great client/investor list, and be in great shape. 

Hope that helps!

Jill

@Jill DeWit Thanks! Yeah that's what I had heard, that a lot of people wanted to see deals first.  So you can see where I might have been a bit confused.  Thanks for the clarification!

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