The best time to figure out your financing isn't after you find the deal

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The best time to figure out your financing isn't after you find the deal

Frankie VozziBusiness Member
Member since 2025 · 344 posts · 85 votes

I had a conversation recently with an investor who was analyzing a property and already had the purchase price, rehab budget, ARV and expected rent figured out.

Then we got to financing.

That was the one piece he hadn't really mapped out yet.

It reminded me how often investors spend weeks hunting for the right property, but don't really know what their financing will look like until they're ready to make an offer.

The investors I've seen move the fastest tend to do the opposite. They already know roughly how much leverage they can get, how much cash they'll need and what their exit might look like before the deal shows up.

For those actively buying right now, do you line up financing before you find the property, or do you find the deal first and figure out the capital afterward?

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 635 posts · 463 votes
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Financing gets lined up before the deal, every time. I know my DSCR lenders' exact terms before I ever make an offer — 70 to 80% LTV, what rate they're at, what minimum debt service coverage ratio they require, and how long their close takes. That way when a wholesaler sends me a deal at 9pm, I run my four numbers and know in ten minutes whether it works with my financing already in place. Figuring out lending after you're under contract is how you lose earnest money or get forced into a hard money loan at 12% because you ran out of time. The investors I know who move fastest shop lenders the way they shop markets: once, up front, then they just execute. Get your term sheets, save your loan officer's number, and make financing the easiest part of your process.

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  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 635 posts · 463 votes
    2d

    Financing gets lined up before the deal, every time. I know my DSCR lenders' exact terms before I ever make an offer — 70 to 80% LTV, what rate they're at, what minimum debt service coverage ratio they require, and how long their close takes. That way when a wholesaler sends me a deal at 9pm, I run my four numbers and know in ten minutes whether it works with my financing already in place. Figuring out lending after you're under contract is how you lose earnest money or get forced into a hard money loan at 12% because you ran out of time. The investors I know who move fastest shop lenders the way they shop markets: once, up front, then they just execute. Get your term sheets, save your loan officer's number, and make financing the easiest part of your process.

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    • Frankie VozziBusiness Member
      OP
      Member since 2025 · 344 posts · 85 votes
      14h

      James, 100%. Having the financing mapped out is what lets you make that 9pm decision without scrambling the next morning.

      With 454 doors, I'm curious about one thing though—do you still keep multiple DSCR lenders in rotation depending on the deal, or have you gotten to the point where most of your acquisitions go through the same lender?

      [email protected]516-888-7750
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  • Noah WrightBusiness Member
    USA, Nationwide · Member since 2024 · 174 posts · 90 votes
    1d

    Pre-approval gets you partway, but the real speed comes from having the property's own numbers ready when a deal lands. Most DSCR lenders underwrite off the rent, not your income, so if I have a rent roll and monthly expenses I can usually give a quick read on whether that specific house funds, and then there are several other variables to check too. The quality of the pre-approval is directly proportional to how thoroughly the deal was evaluated prior to your receipt of that pre-approval. Hard money lenders typically want a rehab budget, ARV support and scope of work for flips. The investors who close fastest have their general terms locked up and show up with the deal's paperwork already organized. The numbers get you to the table, the documents get you to the closing.

    [email protected]737-773-3717
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    • Frankie VozziBusiness Member
      OP
      Member since 2025 · 344 posts · 85 votes
      14h

      Well said, Noah. The paperwork piece gets overlooked a lot. Having general financing lined up helps, but being able to hand the lender a clean package as soon as the property shows up can make a huge difference in execution time.

      [email protected]516-888-7750
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  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 330 posts · 120 votes
    1d

    @Frankie Vozzi Financing should ideally be mapped out before the right property shows up, even if the final structure will depend on the deal. Knowing the likely leverage, interest rate, points, cash-to-close, reserves, and lender timeline makes it much easier to submit an offer with confidence.

    It also helps investors compare exit strategies early. A deal that works with short-term rehab financing may look very different after refinancing into a long-term loan, especially once closing costs, seasoning requirements, debt-service coverage, and the new appraisal are considered.

    There is still value in maintaining several capital options rather than forcing every property into one loan product. But waiting until a deal is under contract to begin those conversations can create unnecessary pressure and weaken an otherwise strong offer. The investors who can move quickly usually are not figuring out financing from scratch—they already know their likely funding path and are simply matching it to the opportunity.

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    • Frankie VozziBusiness Member
      OP
      Member since 2025 · 344 posts · 85 votes
      14h

      Exactly, Divin. I especially agree on keeping multiple capital options available. Knowing your likely funding path beforehand doesn't mean forcing every property into the same product it gives you the ability to match the financing to the deal instead of making that decision under pressure.

      [email protected]516-888-7750
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