what comes first, the chicken or the egg?

[Kayla Needens]

Hi! Wanna be investor here. I've been listening to tons of podcasts, reading books, lurking forums, trying to get myself pumped to start investing. I don't know if it's something that maybe depends on the situation, but I keep hearing conflicting information when it comes to financing, in terms of what comes first the deal, or the financing. 
Do I find the deal, and then go find the money, or the other way? Does it depend on whether it's a traditional lender or a hard money lender?

thoughts?

[Jason Wray]

Kayla,

The reason you find the money first is to know you have secured the funds and at what cost.  Traditional financing will have a lower rate and sometimes less fee's.  The bank/lender will provide you an approval letter so that you can supply that to the seller/agent to show your qualified and at what amount.  Private money can sometimes be faster but again is it worth the higher rate and sometimes other set backs >Prepayment penalty, Balloon payment, adjustable rate etc...

Hard money is generally the best way to go if you have good credit and income to qualify.