Would you make offers before you have funding setup?

Question

I keep hearing the “build it and they will come” strategy as highly effective.

Brandon turner asks, “Well how many offers have you made this week?” Surely if ten got accepted at once, you would have to finagle some creative financing strategies yeah?

Just curious what people with little cash would do in this situation?

I have tasted a little of finding the deal and the money comes after, but that doesn’t mean it’s not a little nerve wracking.

Ronald Allen Barney · Answer

1.  Funding first.

2.  Then a contractor you can trust.

3.  Then deal finders, including agents, wholesalers, bird doggers, lead genners, whoever.

4.  Then a property manager.

Caroline Gerardo · Answer

To get your offer accepted if you aren't paying all cash and can show the cash in a checking account you need a firm letter of approval conditional on only appraisal. Also you need to be willing to show you have additional cash if the appraisal does not come in at value which is happening in many markets. Your lender can update the letter every sixty days if you update your bank statement and paystub if you are a W-2 earner.

Corey Frank · Answer

@Ruben Goodbear Anders Hey ruben! I am a complete newb but would like to put my 2 cents in as I am at this stage with my investing too! If I personally was asking your question, I would also ask myself what my investing goals are. If you are wanting to BRRR and long term hold, I think you need to have some idea of what the bank would give you for financing or have a partner ready to go. If BRRR is your targeted strategy, and you manage to get a good property secured, the lack of financing in the form of a bank or partner could lead to you hurrying to secure financing and maybe missing the opportunity completely. If you want to wholesale, it may not be a bad idea to have know of some buyers in the area for when you find a property and if you are solely wholesaling, having financing shouldn't be your worry.

Me personally, BRRRR and long term hold will be my exact strategy therefor at this very moment I am reading everything I can on how I should approach the banks. What type of BRRRR terms I can ask about. Hope this helps!

Would you make offers before you have funding setup?

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