Steps To Purchasing First Rental?

[Jason Greenway]

I am trying to figure out the steps in which to take in regards to purchasing my first rental home, and I have a stumbling block.

My question is, I am going to be using a hard money lender to fund a majority of the property (approximately 75%-80%) then do a cash out refinance at the end of the term into a 30 year conventional note. The question being, do I have to have the property under any contract before applying for the hard money loan? Or do I apply for the loan, then pursue the property?

Hopefully this makes some sort of sense. What comes first, getting the financing, or getting the property under a contract? (if so, what kind of contract?)

[David Bell]

I'm thinking you'll want to get the pre-approval of financing first.