How Are You Financing Real Estate Auction Purchases?

[Dominic Richardson]

How Are You Financing Real Estate Auction Purchases?

I’ve been spending more time following and bidding on real estate auctions and have been finding some interesting opportunities.

The challenge I’m running into is finding financing that works well with auction purchases. Many of the auctions I participate in allow 30–60 days to close, but there are typically no financing, inspection, or appraisal contingencies.

For those actively buying through auctions:

• What funding sources are you using?

• Hard money?

• Bridge loans?

• Private lenders?

• Something else?

I’ve had success with auction properties in the past, including purchasing a property in Kiron, IA for $5,500 and later selling it for $21,000. I’ve also purchased and flipped land acquired through auction.

In addition to lending relationships, I’m also interested in connecting with investors who may be interested in partnering on deals as equity partners. I’m seeing opportunities that I’d like to pursue more aggressively, and I’m open to discussing joint ventures with the right people.

Would love to hear what’s working for others in today’s market and connect with investors active in the auction space.

[Jay Hinrichs]

Quote from @Dominic Richardson:

How Are You Financing Real Estate Auction Purchases?

I’ve been spending more time following and bidding on real estate auctions and have been finding some interesting opportunities.

The challenge I’m running into is finding financing that works well with auction purchases. Many of the auctions I participate in allow 30–60 days to close, but there are typically no financing, inspection, or appraisal contingencies.

For those actively buying through auctions:

• What funding sources are you using?

• Hard money?

• Bridge loans?

• Private lenders?

• Something else?

I’ve had success with auction properties in the past, including purchasing a property in Kiron, IA for $5,500 and later selling it for $21,000. I’ve also purchased and flipped land acquired through auction.

In addition to lending relationships, I’m also interested in connecting with investors who may be interested in partnering on deals as equity partners. I’m seeing opportunities that I’d like to pursue more aggressively, and I’m open to discussing joint ventures with the right people.

Would love to hear what’s working for others in today’s market and connect with investors active in the auction space.

Depending on your experience and the deals I personally provide capital for these type of deals both as equity and as debt.. And in IA and in other states love the low balance stuff that 99% of HML will not touch .. End of the day its basically a JV you do the work I do the money and we split profits depending on the deal each deal can have a different return % for you and for me just depends on what we are doing..  Also this is true private money no broker no underwriter ( I am the underwriters LOL) etc etc.. If I like it we get on it and start making money