Will Hard Money lenders finance Foreclosures from the sheriff auction so that an investor can apply the BRRR strategy? If not... does anyone know of any other financing method that could be used?
The problem with any lending for auctions is that many states require payment right at the auction. IDK how Ohio does it, though. Here in CO, you would need the lender to be physically present with you and ready to hand over the money right on the spot. And, the properties to be sold are announced less than two days before the auction. So, not much time to decide you want to bid and run title checks to be sure you know what your getting. But if you can find a HML who can live with these constraints, its possible.
thank you very much @Jon Holdman
In New Jersey sheriff sales require a 20% deposit. If you were able to cover that, a lender would finance the rest for you. The best thing to do is to reach out to a reputable lender and ask them how they can help you for your exact situation.
In Georgia you pay as soon as the auction is over. No good way to securitize the loan so no commercial lenders will do it.
Private lenders could. My guy would let me buy it and secure it later, but that's a relationship thing. Nobody you don't know would ever take that risk.
Might find a partner that'd form an LLC you both own to put up the cash or something. The courthouse deals in Atlanta aren't that great that I've seen for the amount of effort and added risk. Prob very different in other markets.