Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 4 years ago,

User Stats

10
Posts
3
Votes
Alex Jackman
  • Chicago Land Area
3
Votes |
10
Posts

Money First vs. Deal First

Alex Jackman
  • Chicago Land Area
Posted

Question: Should I network to find a partner and hard money lender BEFORE or AFTER finding a deal?

Background: I am new to the investing world with only 1 renovated 3-flat in Chicago and 15k in savings. In order to finance my next deal (fix & flip), I need outside, non-traditional financing (equity partner and hard money). Here's the problem... 

1) I can not offer on publicly listed properties without proof of funds

2) I do not want to promise a homeowner of an off market property the world and not be able to follow through

3) I have had challenges finding a partner willing to take a risk on me (someone with little experience, some knowledge, & a lot of drive) without a deal

I feel like in order to attract an equity investor with my level of experience, I need a deal with so much margin they would be crazy to say no. However, to find a deal I would need to enter into a contract that I might not be able to perform on.

My Options: 

1) Do I contract a property without guaranteed funds and then market it?

2) Do continue networking and wait to find a great deal until I find someone to financially back me?

3) Is there another strategy or option I am missing?

Loading replies...