We are looking at a house that is being auctioned next week in Gulf Shores. They only accept cash. What is the best way to show cash in hand in order to buy it when you don't have the cash and need to borrow the funds? Thanks in advance.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
1y
What is the financing vehicle? If it is a credit/equity line, you could provide a lender letter that the funds are available immediately for funding - and cured any recission period. If you're going to need a mortgage, you're locked out of the game. You won't be considered a viable buyer and not allowed to bid.
Real Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 726 votes
1y
Hey @Jason Hatfield, welcome to the BP Forum! What are the terms of the auction? Do they require payment on site or do they give you a certain number of days to close the transaction?
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
1y
What is the financing vehicle? If it is a credit/equity line, you could provide a lender letter that the funds are available immediately for funding - and cured any recission period. If you're going to need a mortgage, you're locked out of the game. You won't be considered a viable buyer and not allowed to bid.
@Patricia Steiner we were actually under contract and using a bridge loan. The inspection showed more issues than we expected but the seller wasn't willing to negotiate so we cancelled in the due diligence period. Now it's in foreclosure and going to auction.com
Real Estate Agent · Orange Beach, AL · Member since 2018 · 36 posts · 15 votes
1y
@Jason Hatfield Afternoon! When my business partner and I were still flipping we bought a couple through Auction.com and we always used a private money lender to fund those and our other flips. It is not uncommon for auctions like this one to get rescheduled multiple times before ever actually making it to the courthouse steps. I am an investor and real estate agent in Gulf Shores / Orange Beach and would be glad to help in anyway that I can. It could be possible to still negotiate a purchase depending on the stage of foreclosure it is in. Do you happen to know who the lender is?
@Matthew Creel thanks for the info. It actually went to auction initially on the 8th but no bidders except the starting bid which I believe was the bank. The 26th is the next auction. Movement mortgage is the mortgage company.
@Jaycee Greene they require a non refundable deposit and give 48hrs to see proof of funds
I would suggest developing a relationship with an HML/PML that would give you a "guidance line" that would basically be a "pre-approval" for situations like this to present to the buyer/auction company.
We are looking at a house that is being auctioned next week in Gulf Shores. They only accept cash. What is the best way to show cash in hand in order to buy it when you don't have the cash and need to borrow the funds? Thanks in advance.
I recommend that you find a trusted or recommended Mortgage Loan Originator (MLO), who can give you options for property-based loans (mostly investment loans) and they don't use your taxes but the P&L of the property. One of these loans is the DSCR, but you need at least a month to have the funds available. Regards!