BGP not peering over Lo0

I have 4 routers, two in the middle, R3 and R4, which are just transport, R1 and R4 are the endpoints. I want them to form a  bgp relationship then use the GRE tunnel to actually move traffic. The configuration I have is tested and working from a colleague. The problem is that in my home lab I cannot form a BGP neighborship between the two endpoints over the loopback interfaces. I am rather new to BGP, and have only used loopbacks a few times. I can ping the loopbacks on each end from the other end sourced from the local loopback. I have attached the 4 router configs, which are short. Thank you.
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naderzConnect With a Mentor Commented:
pergr is correct. You need the multihop command on the peer statement since the two neighbors are not directly connected.

What you also need is either an IGP routing protocol or static routes that direct the traffic for BGP neighbor relationship.

On R1 you need a static route for L0 of R4 pointing to the the R2 interface connecting to R1. Your present default routes point to the tunnel interface on the other side. Before the tunnel comes up and before the BGP neighbors can establish, the two end routers' BGP processes need to be able to find each other.

e.g., On R1:

router bgp 1
 neighbor multi-hop 3
ip route

You will need similar change for R4
psychokraftAuthor Commented:
pergrConnect With a Mentor Commented:
Since you use ebgp. (different as numbers) you have to add also the 'multihop' command.
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psychokraftAuthor Commented:
Thank you both for your help. I will be accepting both as an answer. Narderz, I plan to use the tunnel to handle the bgp route after it is established. Should I have the bgp running before I configure the tunnel?
You are welcome and, yes, you need the BGP for populating the route table for the tunnel to work.
Actually, all you needed should have been the multihop command. I was reading the message on my mobile and missed the whole point of you wanting to establish BGP through the tunnel. Once the tunnel is up and you have the multihop command, you should be good to go. I realized that once at home and reading the whole message!

I believe the points should go to pergr :)
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