Investor · Worcester, MA · Member since 2020 · 1k+ posts · 1k+ votes
I found a very attractive bank owned property that will go up for auction in a few days. I am planning on utilizing the BRRR strategy with holding it in mind for continuous cash flow once I refinance / pay the creditors. In reviewing the opportunity, it advises "cash-only", no hard money loans or a home line of credit. I have the money for the deposit, however I need to show proof of the funds within 2 business days of the purchase. Is my only option finding a "private lender"? Can anyone think of any other financing options or have done this before? I just don't want to pass up this great deal or at least trying to go for it!
FYI - I do have about $230K or 61% equity in my current residence and about $50K of liquid assets so the funds are not an issue, the timing is though. I need about $150K in financing immediately for this opportunity.
Lender · San Diego, CA · Member since 2014 · 266 posts · 161 votes
6y
@Andrew Freed I think you're only option will be to partner with someone that has the money. They can deposit into your account , you guys have an outside JV agreement, but the property, stabilize, then refinance your partner out. Treat him like your lender. I don't think any lender will be allowed, when you say "private lender" , I assume you mean a loan to you with a lien on the property. Liens won't be allowed prior to close. But a private JV style partner should get around that - just make sure there are no "seasoning " or other large deposit requirements from the seller/bank. They may require an explanation of any large deposits, So, be prepared to go through all the hoops. Nothing worth having comes easy! Good luck!