Agents requiring preapprovals

5 Replies

Hi guys,

I don't have a lot of cash - at least not enough to put a 20% down payment on most properties. I know that if I had a good deal, I could easily partner with someone. But I'm having a hard time locking up a deal because most agents are requiring pre-approval before I can even put in an offer. I realize this is a numbers game...more offers = more deals. But I feel like I need a pre-approval to put in an offer, and I need an accepted offer to get an investor and/or bank financing. Any suggestions on how to go about that?

It's a chicken VS egg scenario. You may have an easier time approaching for sale by owners as they'll be much more likely to show you a property without documentation. That way once you know you've found a smoking deal you can locate an investor. 

You do this once and kill it and you'll not only be making some money but you'll also have a track record. 

Originally posted by @Cody Swainston :

Hi guys,

I don't have a lot of cash - at least not enough to put a 20% down payment on most properties. I know that if I had a good deal, I could easily partner with someone. But I'm having a hard time locking up a deal because most agents are requiring pre-approval before I can even put in an offer. I realize this is a numbers game...more offers = more deals. But I feel like I need a pre-approval to put in an offer, and I need an accepted offer to get an investor and/or bank financing. Any suggestions on how to go about that?

 Find that partner and get jointly preapproved. Have you spoken to a local lender yet? That is 100% step 1, long gone are the days of lax mortgage underwriting.

Awesome thoughts everyone! Thanks. 

@Chris Mason No I haven’t talked to a lender yet. I’m actually a lender myself...but I do agriculture lending so it’s a little different than a traditional mortgage lender. I’m not super familiar with that side of things. Probably best that I go talk to some lenders in that world and see what they expect.