Should you get a Multi-Family under contract first with a HML ?

[David Beasley]

If you are considering to use a Hard Money Loan, should you get the property under contract first then reach out to lenders, or should it be the opposite reach out first to a Hard Money lender then get the property under contract? What Steps would you take for a Multi-Family ?

[Joseph Cacciapaglia]

You should always reach out to lenders prior to making offers. Good lenders will always go through financing options with you on a deal prior to you making offers. If it's a 2-4 unit property, most HMLs will provide a pre approval lender to submit with your offer. Once you get to 5+ it's much less common to get a pre approval, but they will typically give you a soft quote. Not knowing what financing is available before making an offer is like going shopping without knowing if you have money in your wallet. Lending programs, pricing, and availability can change rapidly, especially in today's environment.