I’m preparing to participate in the upcoming San Diego County tax auction and am trying to understand how other investors typically finance these acquisitions.
In my case, the strategy would be purchasing properties significantly below market value and structuring financing secured by the property itself.
Does anyone here have experience with lenders or private capital that fund auction purchases with structures such as:
• First position on the property after purchase
• Short-term bridge financing (6–12 months)
• Funding based on conservative loan-to-value after acquisition
Since auction purchases often require quick closings, I’m curious how others structure this with private lenders or capital partners.
Any insight from investors who have done this before would be very helpful.
How do investors typically finance tax auction acquisitions?
Have you read the terms and conditions? You have 5 days to submit full payment. This in practicality means you have access to the funds at time of bid because of the challenges of obtaining funding in 5 days
Because I was on the market for a beginner flip or a value add house hack for a protege I consider signing up for the first time in quite a while but the wife talked me out of it.
redemption until the day before the auction results in a lot of wasted due diligence.