Brand new aspiring real estate investor here, hoping for some professional insight on a beginner question. After reading books and listening to podcasts, I keep running into the same dilemma. Do I get my financing in order before starting a mailer marketing campaign or do I send out mailings first and figure out financing after the marketing (hopefully) generates leads? More nuanced, how detailed of a plan for financing do I need before I start actively hunting for deals?
Thanks in advance!
Hey @Alex Velasco
As a fellow newbie, I find myself asking the same question. It's tough because you need financing to pull the trigger on a deal but without financing you don't know what you can afford and may have to pass up deals. I'm leaning towards getting the financing in place before pursuing any deals personally but I plan to do flips so my situation may be different than yours. I'm sure you'll get good feedback from the experienced BP community on what the best course of action is.
I'd always figure out the financing first. Once that is squared away, you can confidently go after deals rather than getting something lined up and then having to wait on financing and run the risk of losing out on something good due to bad timing. Unless you're going after a large loan amount or something creative, you should be able to get a loan through a bank/credit union if your income and credit can support it.
@Alex Velasco I think I'm with @Bob Okenwa on this one, figure out the financing first. He makes great points but on a practical level your financing will help you know where to target. If you have $150K in capital you're probably not sending mailers to Aspen. There some hyperbole there but hopefully it makes the point. If your financing situation changes you can adjust your marketing outreach but if you're starting out you getting a little bit of focus might help.