Sherrif Sale

[Chanel W.]

If I was purchase a house at a Sherrif Sale where would I be able to get the money to get my property fixed so I could either resale or rent it out?  And about how long do you have to pay back what you borrow from a lender?

[David Dachtera]

Originally posted by @Jerry W.:

@Chanel W. if you do not have any of the money now it may be tough. Usually you borrow about 75% to 89% of the money to buy from a bank, then you use a LOC or get friends or others to loan the money for the fix up. Most conventional lenders will not finance both the purchase and the fix up because of rules on what percentage they can loan on. Some folks use hard money to buy and rehab, but you tend to need some experience to attract most hard money lenders. Some folks use credit cards to buy things for the fix and flip.

Then, of course, there is private money. Those are closer relationships and often can provide funds to both acquire and repair. Then, you can refi to a more conventional loan to pay your lenders off and take part of your profit before you have an end-buyer.

That's kind of advanced stuff, and Chanel seemed a bit new for me to go that deep. So, I suggested the education to help her get up to speed with the terminology, etc. she's reading here on BP. 

David J Dachtera

"Success is not a destination. Failure is not an event. Success is a process, failure is a choice."
- DJ Benedict