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Funding

Which Comes First – Deal Finding or Deal Funding?

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eggToday I want to tackle a question I get all the time from investors.

“Should I focus on finding a good deal, or should I focus on funding first?"

I can certainly understand why this can seem a little bit confusing. After all, it’s the chicken or the egg, right? Should you focus on finding the deals first or finding the private money you need, so that you can actually close on them?

Here’s What I Suggest…

First off, I feel your first action step should be to map out your marketing plan. How are you going to get your phone ringing with motivated sellers?

Now, why do I suggest crafting a marketing plan for your first action step?

Well let’s say you go out and get a great deal under contract, but you don’t quite have the funding lined up yet. You probably already know that you can put an “out” in place (i.e. an inspection or financing contingency) so that, if you either can’t find a buyer or can’t get funding for the deal, you can pull back from the deal and you’re…


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