Do you line up funding before or after finding a deal?

Question

Genuine question for active investors here

Do you prefer having financing options ready before submitting offers, or do you secure funding after you have a deal locked?

Pros and cons to both, curious how others approach it.

Joe Villeneuve · Answer

Both.  The mechanics are a little different whether you are dealing with traditional financing or private.

Either way you must first get approved for financing in general as far as you personally.  You will find out what your limits are with the lender.

Then, after you get the deal, you get financing for that specific property.

Doug Smith · Answer

From a lender's perspective (who also happens to personally invest), it's great when I can gather several items from a borrower in planning for the offer. Normally, we'll get a personal financial statement, 2 months of bank statements to show liquidity, a "schedule of experience and real estate owned", entity docs, a driver's license, and discuss what their credit looks like. If we have this, we can prepare a "battle plan" for the offer to ensure that the deal flies through smoothly. Developing a strong relationship with an experienced, competent lender is key. You want to make sure that when you make an offer, it sticks. It also helps the seller know you're for real. Making an offer without doing work up front with your lender, in my opinion, puts you at a disadvantage unless you're paying cash. Hope that helps.