Pre-Approved: Stop Losing Properties and Start Closing Deals

Here at Hard Money Mike we have seen a number of clients who are losing deals because they don’t have the financing they need. Whether you are new, or switching directions on your property type, it is crucial that you are prepared. Stop losing properties and start closing deals today! 

How to get the best deals.

In this competitive world, you need to make sure that you are prepared! Those who are not prepared will loose properties, as well as upset those they work with. Whether you are working with a wholesaler or a realtor, your performance and professionalism will greatly impact your future success. Being prepared from the very beginning will not only create good relationships, but it will also provide more opportunities to find the best deals. 

Find the right lenders.

Many new investors focus primarily on finding properties. Although it is important to find and compare properties, it is imperative that you find the right lender first. What do we mean by right lender? Every investor, property, and situation are different. Find the right lender for your needs. Especially as a new investor, finding a hard money lender will be the key to your success. Unlike traditional lenders, hard money lenders often give you more money, require less money in, and provide the flexibility you need to close deals quickly.  

Example:

Client is all in at $170K 

Property is worth $270K to $300K. 

He needs 100% financing

ARV loan  is 62%

As a hard money lender, it is the perfect situation. 

The importance of pre-approval.

Real estate investors need to make sure that they are not only pre-approved, but pre-approved with the right lender for the current deal. In doing so you will close deals quickly and strengthen relationships with realtors, wholesalers, and lenders. For those who are not using the lenders right away, it is important to keep in contact with them so that they know that you are still out there looking for properties. In regards to wholesalers and realtors, it is imperative that you create a good relationship from the very beginning. Get your funding secured today to get to the top of the best deal list. 

Is pre-approval based on a property?

Normally pre-approval means that you are approved for a certain dollar amount. However, lenders do look at the property to make sure that it fits their guidelines. For example, if someone comes in and says that they are approved for $300K, they still might have to bring in some money depending on the property. Investors also need to make sure that they have the right loan for the right property. If you are pre-approved for a DSCR, you can’t use that for a fix and flip property. By obtaining a collection of pre-approvals, it will allow you the flexibility you need. Whether it’s a fix and flip, rental, land split, construction, combination, 1 to 4 unit, or a larger complex, you have the opportunity to close a deal quickly by securing your financing first.

Embrace the learning opportunities.

By looking at your credit score and working with others in the business, you will be a step ahead. More importantly, if you secure your funding first, you are going to not only create wealth, but you are also going to establish relationships. Throughout the process it is important that you don’t get in your head. Take every experience as an opportunity to learn and grow. In doing so, you will learn what you need to do and the things you need to fix in order to be successful. It will get easier over time! Give yourself a little grace during the process.

Here at Hard Money Mike we want to help you create the wealth you want! Contact us today to find out more about pre-approvals. How hard money can help you get on the fast track to success!

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