Do you need to have rope in hand before you attempt to tie someone up?

[EJDean]

Core Rulebook p. 200 wrote:

Tie Up: If you have your target pinned, otherwise restrained, or unconscious, you can use rope to tie him up.

When you're attempting to tie someone up, do you already need to have the rope in hand? Any table I've been at has always handwaved it.

If you do need to have rope in hand, does it give you the -4 penalty for not having two hands free? Or can you use some action to retrieve it during the grapple?

[Rysky]

I'd say the former, thought there's probably an archetype or feat that helps with it somewhere.

[blahpers]

1. Yes, but since it's only a move action to retrieve said rope and a standard action to maintain the grapple, getting it out shouldn't be an issue.
2. Technically, I guess so. I've always handwaved it.