The chicken or the egg...what comes first??

Question

Hello everyone, I'm new to the real estate business and would like to make offer on our 1st fix and flip. But I have a total newbie question...do u make offer first or acquire hard money lender first? I would assume a lender would want house under contract first but I don't want to make an offer until I know that I have money to back it up. So I'm stuck in a what comes first...the chicken or the egg type dilemma. Thanks for your help!

Fred Heller · Answer

@Veronica Boswell  You definitely want to get your financing lined up before you place an offer. Most sellers are going to want proof of funds or pre-approval letter before they accept your offer.

Veronica Boswell · Answer

Congrats on ur closing! Going to REI meeting next week and hoping to meet a HML. Thanks for your advice at least now I can go into that meeting with more confidence on timelines.

Veronica Boswell · Answer

wow that's really fast! I looked at one hard money lender that was recommended here on BP and according to their website a contractor would go out to check out the house and verify the repair cost first. Which is reassuring to verify our numbers since we are new but seems like that would take time to complete. I will keep shopping around but will definitely put that offer in. Thanks again for your help!

Tommy Townsend · Answer

Chicken always came first!  Good luck!

Veronica Boswell · Answer

Thanks so much for the response. About how long did it take for the pre-approval process through your hard money lender? I'm ready to pull the trigger on this deal but I want to make sure I got the bullets first😊 And from what I've been reading timing is everything.