Hard Money Guidelines Question

[Kevin Pruitt]

Hello BP community! I am in the process of looking to purchase a home/homes from the Sheriff Sale Auction in my county/surrounding counties, and was curious how Hard Money Lenders work with these types of transactions. Do most HML require the title to be in my name (or LLC) prior to funding me with the money? Or do most fund the money prior to the auction so that when you do win the bid you can just write the Sheriff Sale the check for the full amount? If the title has to be in my name (or LLC) that would most likely mean I would have to come up with the full amount of the bid I won prior to getting the funds. Any type of help is much appreciated. Just looking to learn a little more before I dive in! If anyone knows of HML in the Akron, Ohio area that would be great too so I can get their input. Thank you!

[Bob Floss II]

@Kevin Pruitt You need cash in hand to bid on sheriff sale properties so you have three options. 1) Find a private money lender that will advance the money (very unlikely), 2) Use your own money and immediately look for partners or hard money lenders to pull your money back out once you have deed recorded in your name, or 3) talk to a hard money lender that can approve you for a line of credit and take a draw to go to auction.