Auction Financing Info

[Dave M.]

Hey Folks,

First post. Love this f'n place. 

Any insights out there on Auction Financing? 

I'm like upper-amateur level and none of the content I've gotten into yet sheds light on Auctions. 

What are the general rules on financing for Auctions?

Have a great Week!

DM

[Ned Carey]

@Dave M. the rule is have the money or don't bid.

It is simply not practical to finance auctions. There are multiple problems. First is the timeline. You are expected to close on time, typically 30 days, not when the lender gets around to closing your loan. Next is the fact you may not have access to the property before settlement for your lender or appraiser to inspect the property.

many lenders simply don't loan o those kinds of properties; distressed sales.

Yes there are lenders who will do this. Some hard money lenders or private lenders will, however this is only for experienced renovators with a track record with that lender.