Which Comes First: Deal or HML

[Michael Pilolla]

Hey BP Peeps,

I'm working on finding my first deal and wanted to share this with y'all to hopefully get some feedback.

I've identified a property who's owners are selling a home here in San Luis Obispo, CA to settle an estate. The house is value at around $650K and it's free and clear. It's been sitting on the market for over 3 months, has a horrible floor plan, and needs about $20K in termite repairs.

Now, the owners are absentee owners who live further down the coast in a home worth almost $2 million with about 80% equity in that home.

I hear the owners are getting a little more flexible with each passing day, of course. So I'm wondering if this is an opportunity to have my agent write up an offer for say, somewhere between $400K - $450 cash with contingency of inspection.

I have about $90K of my own money to put towards it. My question is, do I go talk to a hard money lender to secure a loan for the balance BEFORE I even know the owners would entertain this offer? OR do I make the offer first not know I can secure a HML?

My goal would be to immediately flip it as I'm sure I could sell it for $575K at the very least. 

Thanks for reading and your help in advance!

Michael

[Phil Clark]

As a realtor I will tell you most sellers will not even LOOK at an offer without proof of funds attached, regardless of the amount or terms of the offer.

Get your money together, then make an offer. Will shorten closing as well.