Proof of funds aka pre-approval letter for MF/Apartment Building

[Peter Mason]

When making an offer on a MF/Apartment Building, are you required to show a any kind of proof of funds or pre-approval lettter from a bank?

[Darryl Dahlen]

Originally posted by @Peter Mason:

Aha! I also thought this was a possibility which is why I've asked the question in the first place. 

So which comes first the chicken or the egg?

I've dealt with loans for SF properties but I am trying to get into the commercial side now. So I'm trying to get a handle on what to do first. The problem is to make an accurate analysis and ultimately an accurate presentation to the lender I have to first get access to the property. Sure I can get all the financial statements I can get but without physically getting on the property and doing that due diligence portion of it I can't make an accurate determination. See what I'm getting at? I must have missed that part in all my reading. I always miss some mundane detail. 

Any help would be appreciated. 

How most of my clients operate is to find a property and obtain enough info to make a preliminary decision on if they want to proceed. If they do they put the property under contract, with a financing contingency and DD period. They then use this time to conduct a more in depth analysis of the property and financials while working to line up financing. They can back out if they uncover something they don't like or can't secure a lender and/or terms that are favorable.