Proof of Funs/Pre-approval letter

[Kurt Bouma]

(Apologies for the typo in the subject - can't figure out how it edit that)

For someone looking to get into multi unit/apartments I hear it's good to take a look at a few properties along with running the #'s. 

Problem is that sellers want proof of ability to pay in order to avoid tire kickers, which is quite understandable. 

So, for the experienced buyers out there, did you look at properties before proof of funds or did you at least talk with a commercial lender first and get some sort of commitment? 

Seems as though it's a bit of a chicken and egg problem. Lender isn't going to give conditional commitment with no specific property (nor would a private investor with no actual "deal").

Just wondering how this has been navigated by you experienced folk. 

Is it just flat annoying to look at a property without first knowing exactly how you'll execute the purchase?

[Kevin Fox]

Hey @Kurt Bouma

I always recommend making speaking to a lender one of the very first steps in the process. While you're right that a lender isn't going to make a conditional commitment with no specific property CRITERIA, a good lender will help sort through some scenarios and help you determine your qualifying amount in each.

From the sellers perspective, I think it really comes down to not wanting to waste the energy of getting the home shown (which, in a lot of cases with multi-family properties, includes giving the proper notice to tenants) unless they know the person seeing it is actually capable of purchasing it.

On your end though, speaking with a lender will also help you avoid wasting any time looking at properties that simply won't work.

Feel free to reach out with any more questions!