BRRRR Strategy For First Deal

[Kevin Umberger]

Hey BP,

I have been reading and soaking up as much information from BP in the past couple years as possible. I have still yet to make my first investment, however I am now in a position where I feel comfortable enough to pull the trigger. I found a property in my neighborhood that I would like to put an offer on and pursue. I'm hoping you guys can help me with a question. I plan on using Brandon's coined BRRRR strategy. I have a pretty good understanding of the strategy and the steps. My main question however, is the "Buy" part. Do I need to already have a hard or private money lender in place before I submit an offer? The property I am looking at is a bank owned property. If this is the case, then how do I go about presenting the deal to a hard or private lender without a concrete deal? If I can submit an offer without having a lender in place, and they accept my offer, what happens if I am unable to get financing from a private or hard money lender? I know if "the deal is a real deal" I will have no problem getting financing but just hypothetically what IF I cannot obtain financing? Also, when submitting an offer to a bank owned property, do I need to submit an earnest money deposit? Will I lose the deposit if they do not accept my offer? Will I lose the deposit if they do accept my offer but I cannot obtain financing?

BTW - I have ran the numbers using the BRRRR calculator so I have a solid idea of the type of offer I need to submit to make it a good deal. I just want to cover all of my bases.

Thank you in advance!