First Loan from a Portfolio Lender to Finance First Flip

[Tom Pignatello]

Hello all,

I have a question regarding getting my first loan through a portfolio lender to finance my first flip.

I hear a lot of people say that you should have your financing in place and be pre-approved before looking for deals and securing a deal. I have also heard when going to a local bank to get a portfolio loan you should have a business plan to show the lender and convince them that your investment will produce positive returns resulting in a low possibility of defaulting on the loan. 

So what comes first? Do I find a deal, run the numbers, and put together a business plan before going to the lender trying to get a loan? If the lender approves the requested loan, then do I go make an offer? My concern is that if I do it this way, the deal will likely no longer be available by the time I have the financing in place. 

Any advice will be greatly appreciated! Thank you!