Hello, I am a rookie investor. I am looking at foreclosures on Auction.com and need funding. Any help would be greatly appreciated.
@Candice Gallego What are the terms on Auction.com? Earnest deposit and then 30 days for the balance? In that case, you may be able to get hard money lending. If it's cash only, then something you'd have to get in advance: personal loan, 401k loan, etc, friends / family depending on the price of course.
Likely hard money is the answer -- it has a faster turnaround and is asset based. But, you must have the money required by the site within X hours of the winning bid. This means you need to line up a source of funding today for the auction at the middle of next week ... you get the point -- no last minute looking for funds after a winning bid.
The issue becomes how long you want to borrow the $$ for. Fix and flip? buy and hold? How will you and when will you pay off the hard $.
Thank you for help. Each property might have different terms but most say this. I believe they give 7 days to pay thereafter. If I bought with hard money could I just get a mortgage and pull cash out to pay off the hard money loan? I would like to lease option the properties.
“A deposit of five percent (5%) of the purchase price, or seven hundred fifty dollars ($750.00), whichever is greater, is required and must be tendered in the form of certified funds at the time of the sale made payable to Hutchens Law Firm.”
you will get hard money do whatever ever rehab is needed and depending on if you want to buy and hold or flip the strategy is different. if u wanna buy and hold you rehab the property and do a cash out refi to pay the hard money back but hard money is also gonna require you to pay about 20% down plus some points and title fees. Good luck Hard money is pretty flexible if its a good deal and if you have the money to pay the down payment.