I've been looking in Snohomish County, WA and see what could end up being good deals going to auction in the coming months. Anyone have experience with seeking private lending or hard money loans for auctions?
Goal would be to find one requiring light rehab, rent it out, season, then refi into a traditional product. What type of loan would allow this, anyone have experience with doing this?
I do this in AZ. There are hard money lenders here that do it. So, I would start by asking around to the hard money lenders in your area to obtain their turnaround times.
Alternatively, I would go to the auctions and ask around to see who everyone there uses. Many investors go down their with cash, but alot of them use hard money lenders who can turnaround quick funds.
Caliber RE & Vestus. They work with hard money lenders & investors to purchase properties at auctions in WA.
Hope this helps. Happy Investing!
Thank you @Eddy T. I had no idea that there were investor centric middle-services. How does Vestus profit? Is it a HML brokerage fee structure or something?
@Ryan B Vestus works with Eastside Funding which is a hard money lender in Kirkland Wa that I use to purchase fixers. I have never bought from an auction yet. Eastside referred me to Vestus if I was interested in auction properties. Not sure if this info is permitted on this forum.
Caliber RE uses local hard money lenders too. But they require 20 to 25% down. Eastside only 10% down.
Hope this helps!
They make you pay a fee upfront when you purchase, they make you use their sister HML company for the financing, and they ask that you list the property with them when it's done. That's how most of them make their money.
Most of the local HML do finance the purchase at auction.
Whether you should be buying at auction is the next question... I don't recommend it, especially for your 1st deal.
Check out this thread:
@Nghi Le thank you, that thread was on point.
Another option I was exploring was purchasing through a wholesaler. I'm assuming that, like an auction, these deals would also need a quick cash close. So I'm interested in getting acquainted with local HMLs for that avenue as well.
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