How Do I Find A Deal & Make An Offer...?

[Jason Eyerly]

Hello Everyone,

After spending the past month or two reading and listening to all of the information I could absorb on BP, I've decided that Wholesaling/Buying & Flipping is the way I need to go. However, for flipping I unfortunately have no choice at the moment but to use a HML, with the future intent of buying my first home as a multi-family unit under an FHA. I'm left with a few questions though that have been answered in a couple posts but I still don't clearly understand. So, I was hoping someone could make this into sense for me.

1) At DoHardMoney.com they offer 24/7 proof of funds, and a letter of intent. What exactly is a letter of intent? As I have come to understand it is my offer (backed by the proof of funds) that I give to the agent or seller to sign and begin the closing process. Am I mistaken?

2) Every HML seems to ask whether or not the property is under contract? What effect does that have on whether or not they approve the loan? What if I want to have an offer prepared before getting a contract from the seller? (I feel some sellers may not want to negotiate with someone waiting on a loan to go through).

3) I'm not sure where to find my first deal! I'm looking at the MLS but of the properties listed how am I to know what the owners situation or foreclosure status is (amount owed/default status?) to consider making an offer to fix and flip or to get a contract and attempt to Wholesale the property?

4) Should I go through preforclosures and look for properties and schedule a viewing then send an offer, or should I send a pre offer, or should I contact the owner directly or just show up?

I felt like I knew everything to do, but now that I started thinking about execution, I've got a million questions.

Best Regards,

Jason Eyerly