Getting money for deal

12 Replies

Before I am able to fund a deal myself, what should come first? Let’s say I found a great deal but don’t have the money to fund it myself. Would it be recommended to have lenders/loans lined up first? Before taking action on the property? Is there anything steps I can take in the mean time? Thank you!!

Very first step is to get your financing lined up.  Doesn't mean you need a commitment upfront, but you should have a list of potential financing options/people you can go to as soon as you get a deal under contract.

@J Scott I’m just getting started and I agree. I have a meeting with a mortgage broker I bought my primary residence from set for this Wednesday. When my wife and I bought we told her we would want to buy rentals. We decided to put the mortgage in just my wife’s name. So my credit would be free from any mortgage (although I am on the deed). Hoping that strategy works for us as we want to have some exponential growth over the next 2-3 years using BRRRR....lord willing! But yeah get the money lined up so you know you have various options!

If you found a great property and you can't afford the down payment you can do two things. 1. Put it under contract for as long as they will let you.  Then find a new buyer for what you think it is worth.  This is call wholesaling. 2. Put it under contract and find an equity partner.  If you have any further questions please tag me and I will try to answer quickly.

I agree with everyone so far on this thread.. get your financing inorder first. Start building those relationships with lenders and when you find a good deal you will know who to go to when you need to get your POF letter.

Originally posted by @Darren Nardo :
@J Scott is this the author j Scott ? Author of estimating rehabbing expenses?? Appreciate the answer. That’s why I posted last asking if I should have finances in line first

Yup...  :)

@J Scott do you think it would be a bad idea to bring your estimating rehab costs with me while I tour a house? My partner or myself write down everything on a note bad and use the book to reflect on the house we’re looking at? Atleast until I get good enough / am comfortable enough to estimate ARV and rehab costs on my own. Appreciate it J!
Originally posted by @Darren Nardo :
@J Scott do you think it would be a bad idea to bring your estimating rehab costs with me while I tour a house? My partner or myself write down everything on a note bad and use the book to reflect on the house we’re looking at? Atleast until I get good enough / am comfortable enough to estimate ARV and rehab costs on my own. Appreciate it J!

If you purchased the book from BiggerPockets, it should have come with a spreadsheet that you can print out and take with you.  But, I see no reason not to take the book with you too, and use it as a guide so you don't forget anything...


BP will be releasing the Second Edition of the book in a few months, and I've included a section on "Inspection Tips" for each of the 25 components.  Hopefully you'll find that additionally helpful!

@J Scott awesome thank you. No spread sheet with the shipment but it’s no problem. And I’ll make sure to buy it when it comes out! I just purchased your book on negotiating and a few deal finding books as I’m doing a book every 1-2 weeks. Mass amounts of thank you for this knowledge. It’s really clear and question answering. Especially remembering to give examples when needed helps so much more.
Originally posted by @J Scott :

Very first step is to get your financing lined up.  Doesn't mean you need a commitment upfront, but you should have a list of potential financing options/people you can go to as soon as you get a deal under contract.

If im looking to partner, purchase the property in cash or in my name, and then transfer it to an LLC. How far along in the process do you recommend I be for it to be considered that I have my financing lined up?

Originally posted by @Chris Connolly :
Originally posted by @J Scott:

Very first step is to get your financing lined up.  Doesn't mean you need a commitment upfront, but you should have a list of potential financing options/people you can go to as soon as you get a deal under contract.

If im looking to partner, purchase the property in cash or in my name, and then transfer it to an LLC. How far along in the process do you recommend I be for it to be considered that I have my financing lined up?

If you're paying cash, you don't need financing. 

And if you're paying cash, why not just purchase in the name of your llc to begin with?

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