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Question

How do I finance a deal on the property that I’m trying to purchase from auction.com with auction.com won’t give access to the property for an appraisal? Is this possible to get done?

Nyisha Walton · Answer

Tekoa, the classic auction move: you can buy it, you just can't go inside lol. Some asset-based lenders will work off an exterior-only appraisal or a broker opinion of value, so ask about that up front and price in a bigger rehab cushion since you can't see the inside. Happy to talk through it with you.

Mike Klarman · Answer

No, traditional lenders guidelines, terms, processes do not gel with auctions guidelines, terms, processes. You need a private lender and also buying at auction is a sight unseen proposition. That's the risk. The reward is the reduced purchase price. There's always a give and take.

Sometimes you get a house at auction that previously was listed and you can find pics. Sometimes exterior only sometimes interior as well.

Randy Schell · Answer

After 20+ years of inspections the no access houses are the ones that scare me most..... Most lenders want to see inside, so you're probably looking at cash or a hard money lender, and I'd budget like the inside is rough because sometimes it really is.

Randy, Bunklow

Noah Wright · Answer

You're sorting out the money before the auction closes, which is the right order. Since you plan to hold it, the part that decides your real cost is how soon you can refinance out of the short money. Most DSCR lenders want about 6 months of ownership before they'll do a cash-out refi off the new appraised value. A smaller group will go at 3 to 6 months, often with a lower LTV cap, and before that many will only lend off what you paid plus documented rehab. So whatever funds the purchase needs to be able to sit for a few months, and its carrying cost belongs in your numbers. The short loan gets you the keys, the rent decides the refi. What will it rent for in Anderson? The DSCR lender sizes the loan off that.

Flores Marcus · Answer

Tekoa, let’s connect I do have a good recommendations that can help in this situations. Let’s connect.

David Ghazaryan · Answer

im a broker in Vegas. Listen most lenders wont close a loan without an appraisal, and with auction.com you cant get inside so its usually cash or hard money with exterior only valuation. Then once you own it and its fixed you refi out into DSCR or conventional. Look before you leap on these, no inspection means you price in the surprises

- David

Charlie Sloan · Answer

Before accepting a hard money 11-12% interest rate, see if a lender can get a Property Inspection Waiver on a conventional loan. You'd need to do at least a soft credit pull.

Going to be honest, not terribly likely but it's worth a shot & definitely possible. Up to Fannie Mae and Freddie Mac. I can do this in about 15 minutes.

Otherwise depending on your capital constraints, delayed financing may be an options or a 1st lien Home Equity Line of Credit for a Purchase transaction with only an AVM required (not a full appraisal)

Erik Estrada · Answer

Hey Tekoa,

You likely need to purchase this with a secured HELOC or cash of some sort. At a minimum you will need interior access to the property to take pictures inside the home. You will also need clear title.

Tekoa Glover · Answer

4214 Hembree creek rd, Anderson, SC $201k $10k rehab

Tekoa Glover · Answer

Cash price $201k

Address 4214 Hembree Circle Rd., Anderson, Sc

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