How Are You Financing Real Estate Auction Purchases?

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How Are You Financing Real Estate Auction Purchases?

Dominic Richardson
Investor · St George, UT · Member since 2018 · 89 posts · 39 votes

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.

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4mo
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
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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4mo

    You can find hard money in private lenders who will fund these types of purchases, but you'll be required to put a significantly larger down payment. If you're experienced, sometimes you can get away with 10 or 20% down and 100% of the renovation cost, as long as you don't exceed a certain percentage. With foreclosure properties, you're not allowed to get inside most of them. Most people we have seen will not go above 50% LTV.

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  • Mike GrudzienPro Member
    Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
    4mo

    Chris is spot on!

    0Reply
  • John Stallings
    Member since 2026 · 14 posts · 3 votes
    4mo

    I agree with Chris and hard money will be available. So money would be available in private money is available around 5%..

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    4mo
    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
    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    3Reply
    • Dominic Richardson
      OP
      Investor · St George, UT · Member since 2018 · 89 posts · 39 votes
      4mo
      Quote from @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

       I sent you a DM here on BP. I'd love to connect. 

      0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4mo
    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.


    I usually see investors buy these in cash, using a HELOC, or outside private funding. Auctions can be tough to finance with a traditional hard money if they do not allow you to take interior pictures of the home...

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  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 900 votes
    4mo

    Most of the investors I know who buy at auction have their financing lined up before they ever place a bid.

    With the short closing timelines and limited inspections, I've seen a lot of buyers rely on private lenders or hard money because they can move quickly. It may cost a little more, but losing a deal because financing falls through is usually much more expensive.

    1Reply
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