Deal first? Lender second?

Investor · CA · Member since 2020 · 126 posts · 32 votes

Hey BP Family,

Should I first find a deal get it under contract and then find a company/ lender for the finances? I’m currently looking for property haven’t found a property just yet but I’m already starting the process for loan approval question is am I doing this backwards? Or am I overthinking and does this matter. Thanks in advance BP Community!

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

You should always be 100 percent clear on your financing before you start looking with the intent to buy. Even off-market and distressed properties have multiple offers and buyers looking. When you aren't finance-confirmed, you won't be able to get in an offer quick enough. Be way ahead of the curve knowing what you can afford, where you can get the money and which money you would use for which type of project.

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Brock Mogensen
Real Estate Syndicator · Milwaukee, WI · Member since 2018 · 1k+ posts · 907 votes
6y
Its always good to build lender connections before getting a deal under contract. That way you can get the funding process going quicker once you get the deal under contract. I also suggest shopping a few different lenders to find the best one.
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Jonathon Nila
OP
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Salvatore Lentini Good to know and great advice thank you Salvatore!
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Jonathon Nila
OP
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Dave Spooner Will do Dave thank you for the response back and will consider my options when searching lenders thanks a lot!
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Jonathon Nila
OP
Investor · CA · Member since 2020 · 126 posts · 32 votes
6y
@Brock Mogensen Will definitely build some connections and get the ball rolling on financing 1st and foremost appreciate the advice Brock!
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Ian WalshBusiness Member
Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
6y
Find a lender that is local and private first. They should only request the deal details to decide if they want to fund it.
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Andrew Narsi
Lender · Turlock, CA · Member since 2015 · 46 posts · 33 votes
6y
Originally posted by @Jonathon Nila:
Hey BP Family,
Should I first find a deal get it under contract and then find a company/ lender for the finances? I’m currently looking for property haven’t found a property just yet but I’m already starting the process for loan approval question is am I doing this backwards? Or am I overthinking and does this matter. Thanks in advance BP Community!

Hey Jonny!
Nice to see a fellow Turlock biggerpockets member! :) My name is Andrew and I am a local lender here in town and I am also an investor. I was born and raised in Turlock and am very familiar on what is a good deal and what is not in our town and also the surrounding cities. I noticed that you work at Gallo. I have helped a ton of buyers who work there purchase property. Would love to connect and help you with your journey! You can google my name, I work for a company called Envoy Mortgage.
Andrew Narsi
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