Find the Deal or Find the Funding?

[Alexander Burkard]

In your experience, which would you choose and which has had better success?

A) Finding a great deal first, locking it down, and then find the funding on the great deal.

Or...

B) Secure funding first, with general terms, then find a great deal to apply it to?

From what I've researched it sounds like find a deal and then show the deal to the lenders.

However I see alot of comments on how that's foolish and is a quick way to fall on your face.

Thoughts?

[Lorenzo Wright]

@Alexander Burkard

These two components dont have to happen in any particular order.

I do both at the same time. Why wouldn't you want to know what you are qualified to buy as you are looking at properties. Why wouldn't you want to know the terms of the private/hard money lenders you are going to work with?

Every deal is going to be different. A trashed property won't qualify for traditional lending, so automatically I start thinking about the hard lending.

If you find a deal reach out to who you would fund it with. Or call a HML and see what terms they usually offer, then when you find a deal run the numbers that they gave you.

Good luck!