First time BRRR how to handle real estate agent pre-approval?

Question

So I found a great BRRR opportunity quad MF home that is gutted down to studs.  Good news is the deal I THINK I can get would buy the house for 200k, rehab costs about 80k, and ARV of 500-600k.  This is the worst house in the best neighborhood in town, super hip in the most desirable area.  I've had a few contractors walk through so I'm comfortable with the repair estimations.  My question is this- all the hard money lenders have told me make the deal first and we will get you financed one way or another.  But my real estate agent is asking me to show her a pre-approval letter before she'll make an offer.  Any way around that?

Kevin Romines · Answer

No,  your agent is correct. Get the loan scenario pre-approved with a lender that does fix and flip loans. They don't have to have a signed around PSA to get you approved. They know you need a pre-approval letter to go in with your offer by the agent. If that lender doesn't play ball, then go to another lender. If it comes down to it, just have your agent write the offer, and then give you the unsigned PSA to use with your lender to get the pre-approval letter. Then submit your offer with the pre-approval.

On these deals, speed is critical, have the conversation with your lender and get that pre-approval letter ASAP, so your offer can go in immediately!!!

Justin Kane · Answer

just get a preapproval letter, you can reach out to almost any lender at get one dont just talk to one lender call a dozen weigh your options

Todd Staples · Answer

Good advice thank you