Buy a house at the county auction with hard money, immediately flip it to my uncle, he has 35% down, can I do that?
SF Bay Area
I see two issues with this.
1) which HML will lend you money to buy at the county auction? I haven't found one that would do that in the Bay Area.
2) the bank will likely frown upon the sale as this is a non-arms length transaction with a sizable price mark-up.
@Chris Seveney Right.
He was looking for a property and we came up with this "idea" to buy at auction with hard money and sell to him right after. Targeting high end properties we figure there won't be much competition at the auction. We weren't sure about any seasoning issues. Thanx for the insight Chris
@Minh Le Great to hear from pros in my area!
Will it make it a difference to the HML if I have a buyer in place?
Correction. I'm a plus, not a pro. I plan to downgrade to a free as I don't even feel qualify for a plus. Still have a ton to learn. 👻👻👻
When you're buying at the county auction. You have to pay all cash on the spot. The cashier's checks are made payable to yourself. Once you won the bid, you endorse the checks to the auctioneer. So tell me, which HML will lend you hundreds of thousands of dollars unsecured regardless if you have a buyer lined up or not. Your best bet is borrowing from your relatives.
Best of luck.
Thanx @Minh Le
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