Looking for Funding Help at Trustee Sales in Idaho

I am looking for funding help for Trustee Sales in Idaho. Idaho requires full funds at time of auction, contrary to other states that allow 10% down and a 24-48hr time frame to settle the remaining balance. We have had a difficult time finding financing as it has been a harder sell having to bring 100% of funds at time of sale. Any insight or interest in finding financing through this form of sale would be greatly appreciated.

Thanks in advance.

Edited: 06/26/2010 at 11:47AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

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Icon_minipost Feb 24 '10, 03:14 AM

Why not attend the sales to ask the bidders how they get funded?

Edited: 06/26/2010 at 11:48AM

Dan Walters

Real Estate Investor · Boise, Idaho

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Icon_minipost Feb 24 '10, 05:15 AM

We have been attending the sales and purchasing property, but we have a limited amount of liquid capital. There are a small handful of investors at these sales due to the nature it takes to perform, and they are the same investors every time. The majority of them have been very reluctant to share their money resources. Possibly because we are seen as their competition.

We have only been able to perform on 1 or 2 properties at a time and have to wait for those properties to move (typically 45 days or less) before we can take another couple down. We are seeing too many deals pass us by in the meantime. We would like to find a resource that would allow us to pursue as many as we could handle.

Edited: 06/26/2010 at 11:48AM

Rich Weese

Real Estate Investor · sioux falls, South Dakota

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Icon_minipost Feb 24 '10, 05:24 AM

Dan- what is your experience in this arena? Does your group have any of their own funds in the deals? What area are you buying in? Median price home and values of homes you're buying? Rich
p.s. Most buyers at foreclosure guard their money sources like they guard their life.

Edited: 06/26/2010 at 11:48AM

Dan Walters

Real Estate Investor · Boise, Idaho

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Icon_minipost Feb 24 '10, 05:38 AM

Originally posted by Rich Weese

Dan- what is your experience in this arena? Does your group have any of their own funds in the deals? What area are you buying in? Median price home and values of homes you're buying? Rich
p.s. Most buyers at foreclosure guard their money sources like they guard their life.

We have been purchasing at auction on and off for the last 2 years. My group consists of myself and my business partner and our purchases at the auctions have been 100% of our own funds, which limits us in how many we can pursue.

Our trustee sale market isn't as abundant as say CA, AZ, NV, but we are purchasing in Ada/Canyon counties and look for first/second time homebuyer properties up to $225K. On average there may be 10-15 properties a day that go between the 2 counties. I know that's not a lot compared to the larger markets, but with that we are seeing deeper discounts.

Edited: 06/26/2010 at 11:48AM

Steve Babiak

Real Estate Investor · Audubon, Pennsylvania

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Icon_minipost Feb 24 '10, 06:23 AM

Dan,

Your public records might be a source of answers for you.

I would expect that these buyers are offering some type of collateral to secure the funds; hard to imagine the lenders not requiring this. See who the county recorder has for instruments that might be funding related. Things like deed of trust or mortgage. Maybe they take other properties they hold to serve as the collateral.

Edited: 06/26/2010 at 11:48AM

Bill Gulley

Real Estate Investor · Springfield, Missouri

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Icon_minipost Feb 24 '10, 07:05 AM

Hi, Steve has it to find out who is financing them if they are pledging that property.

Do you have any other properties to assign for funding?

FInd a money partner.

After you buy one, can you refi it privately, have the loan ready to refi in a couple days after you take title? Bill

Edited: 06/26/2010 at 11:48AM

Will Barnard

Rehabber · Santa Clarita, California

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Icon_minipost Feb 24 '10, 07:13 AM

The majority of them have been very reluctant to share their money resources. Possibly because we are seen as their competition.

Not possibly, but you are. Secondly, many investors (I should say most) at trustee sales buy with their own money or that of their groups.

To answer your question, you best approach could be to line up some hard money lenders to fund yoru deals. Take them down at trustee sale with your own, so you are now on title and could then purchase title inusurance, then refi out with your HML and go do it again. Since you have a track record with your own funds, you should be able to find HML's you would play ball with you.

Another option is to raise private funds, but again, you would need to take down property initially so that the private lender could be securitized via deed of trust, hazard insurance and title insurance when they make the loan.

Edited: 06/26/2010 at 11:48AM

Will Barnard, Barnard Enterprises, Inc.
E-Mail: info@barnardenterprises.com
Website: http://www.barnardenterprises.com
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