Hello everyone, I am keeping an eye on local listings to see if anything amazing catches my eye while I learn more about REI. Now, if I do see a deal that I believe will make money after looking at the numbers, should I try to find someone interested in funding it? Or should I be looking for those people now so I can call when those deals come up? I apologize if these seem like stupid questions but I want to succeed here.
I have looked at private money lenders but it seems it will be difficult to get someone to pay 100% purchase and rehab being that this is my first flip. I believe I would have to use hard money, so if anyone has suggestions for lenders you have used please share. Any information is welcome, thanks!
Hello. Your question is not stupid but it shows you need to think things through more. When making offers, financing is a big part of being successful. You should be submitting a purchase contract knowing you have financing lined up. You don't want to make an offer in this competitive market a contract subject to financing. You don't want a contract accepted and then fail to perform. As a buyer in this business, your good name and reputation are everything. You can do it. Just be prepared and keep thinking about the best way to accomplish your goal. You will surprise yourself with what you can do. Best of luck.
I definitely wasnt planning on putting an offer in without money, but more wondering if I should find where I'm going to get that money before looking for homes, or wait until I find a good deal that I can present to someone who may be willing to cover the costs. I am looking into my local REIA meetings to possibly meet someone who I could contact if a deal comes up.
@April Thibodeaux I would do both simultaneously. Begin to line up any kind of financing avenue you can, there are as many ways to finance a deal as there are deals, be creative. Continue looking for houses and continue analyzing deals. Pick an area that you would like to do your first project and comb through all listings. Identify the potential winners and run the hard numbers, practice, practice, practice. When you have proof of funds then your ready to pull the trigger when you find the right one.
I would want financing set up. most sellers want a REAL POF unless your dealing with low value assets or unsophisticated selelrs.
Thank you everyone, I have been looking in my area at homes, I guess now it's time to look more at my options for lenders.
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