Purchase Contracts: Which Happens First?

[Shannon K.]

I've been browsing BP and researching a lot… How do others put a property under contract FIRST, then secure a HML/private equity/crowdfunding for financing AFTER? (I had a pre-approval letter in this instance). Still, you can never be sure the HML is going to come through and if it's a foreclosure which doesn't allow finance contingencies/ or is rehab loan cash-only deal, you then only have 20, 30, "X" amount of days for financing to come through and if it does not, you lose your earnest money deposit for sure?

Over the weekend, a listing agent I met with for a property stated I needed to put down 10% EMD for a property which equaled $12,500. I previously researched that EMD are smaller amounts! I am able to put down that amount in cash, but within the contract it contained a clause I found that if I couldn't secure a HML during a 30 day time period, I would forfeit the entire $12,500/contract terminated. OR I would be fined for each day past 30 it took me to get financing, AND be at risk for extra fees for defaulting on a contract… (Needless to say, no deal obviously, but I'm confused how others put a property under contract first, then arrange HML?)