Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
2y
Hi Peyton,
In general, it doesn't hurt to have a lender in place earlier. The timeline can depend on the your closing is. If you have a month to close on a property, it shouldn't be difficult to get funding even if you start talking to lenders after you are under contract. With that being said, it's a good idea to get an understanding of what kind of financing you will use and what you will qualify for, so you know what to expect in terms of leverage, rates and terms. Happy to help!
Lender · Los Angeles, CA · Member since 2022 · 967 posts · 445 votes
2y
Hi Peyton,
In general, it doesn't hurt to have a lender in place earlier. The timeline can depend on the your closing is. If you have a month to close on a property, it shouldn't be difficult to get funding even if you start talking to lenders after you are under contract. With that being said, it's a good idea to get an understanding of what kind of financing you will use and what you will qualify for, so you know what to expect in terms of leverage, rates and terms. Happy to help!
When flipping houses when do you start the process of getting your funding in place?
In my opinion you want to do your due diligence on lenders prior to contracting a deal. If you are using a true hard money lender, they are able to put numbers together for you quickly and provide you with a term sheet showing cost, rate, payment, down payment etc. Some of them can pre qualify you without credit pull and they do a desk top appraisal. Once you have all of this in place you can shop for deals.
If you have a good loan officer, they can pump out a term sheet for you within minutes once you find something viable on paper.
When flipping houses when do you start the process of getting your funding in place?
Peyton,
Yeah I talk with folks who like to have EVERYTHING squared away before they even put an offer in and then I talk with folks who are reaching out when they have a property already under contract.
I tend to agree with Peyton that it is really good to have an idea on the type of financing you are wanting to do (Hard Money, House hack, Conventional, etc.) and get an idea on the folks to deal with. But, it is definitely possible if you snag a property that you can't pass up on to utilize a Mortgage Broker who can generally get you set up with something based on your needs at the time.
When flipping houses when do you start the process of getting your funding in place?
Hi Peyton! I agree with comments below. It will never hurt to have things in line or at least in conversation prior to moving forward on a deal. Good luck!
Lender · Los Angeles, CA · Member since 2009 · 1k+ posts · 2k+ votes
2y
“When in the process do you start to get your funding in place?”
Last week is best but today is ok too, @Peyton LaBarbera. You don’t want to find a great deal, perhaps requiring a short timeframe to close, and have to scramble to find money. Plus, how will you evaluate a property if you don’t know your lender’s loan criteria? All lenders will be different.
Some lenders won’t talk to you unless you have a deal in contract. Skip those. Most should be able to give you an idea about what they will look for in you and a potential deal.
You should look for money as hard as you look for properties.