I've only ever put in an offer to buy my primary residence, and for that I was pre-qualified for it then I went out looking for a house. Most of the lenders that I've talked to say "show us the house and we'll close in 30 days". Its completely backwards for me and I'm wondering how that usually works. I'm wanting to buy a "for sale by owner" duplex. Do I put in an offer then go to the lender? Do I go the lender with this potential property. How does this work?
Side note: I'm purchasing it through my LLC, so if it's a small bank it would be a commercial real estate type loan. Individual/PML/lending companies probably wouldn't make much of a difference if it were an LLC or not.
I'm new to this as well, and looking to put on offer on my first property in the next few months. What I understand the process to be is as follows:
1) Research - learn all you can, and be ready to act
2) Network - Get to know lenders, agents, and investors in your area. Begin to socialize the idea with your friends and family
3) Find a property and do your due diligence to ensure this is a good deal (like using BP calculators)
4) Go look at the property and get a ballpark repair budget in mind
5) Make your cash offer with an 7 or 10 day inspection contingency to start. I think once you get better at this and have a team on call, you might be able to shorten that window to 3-5 days.
6) Have and inspector and your GC take a look at the property and verify your numbers
7) Take your report and socialize it to lenders, if its a good deal, you will find money
8) Close on your property
Wash, Rinse, and repeat. That's the strategy I am taking.
Those sound like awesome steps. Mine is more of a buy and hold situation so the GC parts of it won't be necessary. I had my property management ready to help me when I'm ready for the next step. But the duplex already has both sides rented out, and the current owner has apparently made a ton of renovations to the place (I assume to make it sellable). So an inspection would be a good idea just to make sure everything was done correctly. But still not sure who I should talk to first, the lender or the seller..
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