Making an offer on property

[Teri Kelsey]

Hi, I am new to biggerpockets and to real estate investing. I tried to make an offer on a house and the real estate agent said I needed to get a pre-approved letter from a lender to even be able to put an offer in. Being that I didn't have much money for a down payment.  I wasn't able to make an offer. Is this a normal reguirement ?  If it is, how am I suppose to finance with private lenders or hard money lenders?  Any help would be greatly appreciated. Thanks

[Brett K.]

Hi Teri,

It's typical for distressed properties to require proof of funds with any offer.  Make sure your financing is ready to go before you put an offer in.  Get pre-approved with a local lender and they can give you a preapproval letter.  Your bank statement (investment act. statement, equity line, etc.) can serve as proof of funds for your down payment.   Once you have those two pieces of paper in hand you can happily go shopping.  If you think of it from the sellers point of view, it only makes common sense they would want this documentation to accompany any offer.