Which Comes First: Deal or HML

[Michael Pilolla]

Hey BP Peeps,

I'm working on finding my first deal and wanted to share this with y'all to hopefully get some feedback.

I've identified a property who's owners are selling a home here in San Luis Obispo, CA to settle an estate. The house is value at around $650K and it's free and clear. It's been sitting on the market for over 3 months, has a horrible floor plan, and needs about $20K in termite repairs.

Now, the owners are absentee owners who live further down the coast in a home worth almost $2 million with about 80% equity in that home.

I hear the owners are getting a little more flexible with each passing day, of course. So I'm wondering if this is an opportunity to have my agent write up an offer for say, somewhere between $400K - $450 cash with contingency of inspection.

I have about $90K of my own money to put towards it. My question is, do I go talk to a hard money lender to secure a loan for the balance BEFORE I even know the owners would entertain this offer? OR do I make the offer first not know I can secure a HML?

My goal would be to immediately flip it as I'm sure I could sell it for $575K at the very least. 

Thanks for reading and your help in advance!

Michael