Chicken and Egg when finding a deal
Hi BP!
This may be a silly question from a total newbie, but I'd appreciate your guidance.
Hypothetical - I find a buy-and-hold property that, when I run the numbers, looks like a great deal (12% Cash on Cash ROI, ~$1,000/mo cashflow). Color me interested, right?
Now, here's my chicken and the egg issue that I'm getting stuck on. I don't have the cash on hand to purchase, and I don't have financing lined up. Do I:
1) Open a discussion with the seller to get more information about the property itself? That seems to lead to negotiations where I'm not yet financially prepared to make any offers.
or
2) Present this potential deal to potential financiers half-cocked with not a lot of information?
or
3) Something else.
I'm getting all spun around the axle on this one and it's stopping my forward momentum. Any and all help is appreciated!