Deal first or funding first?

[Kenny McKeown]

Hey everyone! I’m a newbie, interested in fix/flips and still working towards my first deal. I’m wondering what is more important to do first; get a yes from a seller on a deal, or have funding lined up for said deal? I recognize this may be a silly question, but it’s what’s been confusing me for a while. I will probably go with a hard money loan, as well as some help from family/friends since I’m just starting out and don’t have any of my own money to put into it.

But should I only focus my efforts on landing a deal first, before I even start looking for funding? Or no? I’ve hear that if your deal is good enough, the money will find you and it won’t be hard to find funding. But I guess I need more details on that. Where EXACTLY do I start to finding a deal for a fix/flip? I’ve studied my market, been able to do comps, etc. and I find houses that I believe would be good deals, but as soon as the rubber hits the road, I choke and think I need to have money ready to go before I even ask the owner if they’re interested in selling.

HELP!!

[Rob Lee]

It depends on the market. If you are buying in a market like DFW where the properties are gone within 3 days you need to have funding ASAP. If you are purchasing in a market where things have cooled down or you find a seller unaware of the fact that they can sell to Open Door perhaps you have time to figure out your funding after the fact. So, the most important thing is understanding the market where you plan to buy. Good luck!

Rob