When and How to Analyze Non Conventional Deals
Hello,
I have been analyzing BRRRR properties, and I consistently use the same conventional financing criteria when running my analysis. The problem with my approach, is that when I go forward to make an offer, it is unlikely I will get approved for conventional financing because I am self-employed and looking for distressed properties. I want to have accurate analysis, but am unsure of the terms I would qualify for using hard or private money. Bringing a deal to a hard money or private investor, I need to know my numbers cold.
My questions are, is there some pre-approval process for this kind of funding, where I can know the terms of a potential deal, so that I can use that to accurately assess properties? At what point do I go looking for funding, with deal in hand or before making offers?
I appreciate the help in advance.
Your credit score and debt to income ratio will be big factors in qualifying. Knowing where you sit, and giving ballpark numbers through a lender or broker should be able to tell you.
Okay, that is helpful information. I will be able to give ballpark numbers to a broker. Thank you, Sean!