Hello, I'd like to know if anyone has experience in using hard money to purchase from an auction or auction sites like auction.com, hubzu, or Williams & Williams.
My understanding is that most auction sites do not allow the buyer to use traditional financing. Can I use hard money to purchase a foreclosure from auction and then immediately refinance with a traditional bank? Please note I plan to live in this home as my primary residence.
I'm new to auctions and would love to hear from experienced professionals regarding this matter. Thanks
You generally won't be able to use hard money for a personal purchase.
You generally can't use anything other than cash for live auctions.
If the auction is online, you might be able to then use traditional financing or hard money if the sale allows for financing, it will depend on the auction parameters and the condition of the property. If the property is occupied, you will have a hard time with financing.
There are a few ways to finance an auction purchase, but only in certain states can you get away with it at the auction's closing table (or by their date). Georgia, at least with us, is not one that can be financed straight from the auction site (however, private and local HML's may be able to finance if you have the right relationship).
Aside from that, you can pay cash for your purchase and refinance most of your money out plus get rehab funds immediately following the purchase with some HMLs.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.