Which one first: Make the offer or apply for hard money loan?

[Kalvin Wilburn]

I'm eyeing a single family home listed for $385k and appraised for $510k in 2019.  I plan to acquire the property, rehab, refi and occupy as my primary residence for three years and then rent (military).  Do I submit the offer, then secure the hard money - or secure the hard money, then submit the offer?  

Considering the trend in the listing cost (-$50K every 90 days), I plan to submit an offer of $315k to the current $385k asking.  However, I don't know the rehab costs and this makes it difficult of how much to ask in hard money.  

Reading the BRRRR and estimating rehab costs books, I think I would proceed as such: Agent (offer) - Contractor (rehab costs) - Hard Money - Refi

But again, Im unsure.  Any advice would be appreciated!  

[Account Closed]

Originally posted by @Kalvin Wilburn:

I'm eyeing a single family home listed for $385k and appraised for $510k in 2019.  I plan to acquire the property, rehab, refi and occupy as my primary residence for three years and then rent (military).  Do I submit the offer, then secure the hard money - or secure the hard money, then submit the offer?  

Considering the trend in the listing cost (-$50K every 90 days), I plan to submit an offer of $315k to the current $385k asking.  However, I don't know the rehab costs and this makes it difficult of how much to ask in hard money.  

Reading the BRRRR and estimating rehab costs books, I think I would proceed as such: Agent (offer) - Contractor (rehab costs) - Hard Money - Refi

But again, Im unsure.  Any advice would be appreciated!  

Kalvin, it appears you are retired military, thanks for your service. First, contact a mortgage broker in your area and ask about a zero down VA loan. If that doesn't fly, Secondly, hard money goes like this, you write up your offer, gather comps, add rehab costs, figure ARV and present that to a hard money lender. They will come up with different numbers and tell you what they think. Then, if everything is good, they will lend about 70% of the buying price and expect you to come up with the rest. It's called "hard" money for a reason. Better yet is to find a businessman, doctor, dentist, friend who has a 401(k) and use their money., It's a lot easier, a lot cheaper and more profitable.