In purchasing your sheriff sale properties, how did you finance them?
@Marquita Johnson Generally you don't finance sheriff sales, Foreclosure auctions or even any type of auction. You pay cash.
Now if you have a private lender or a hard money lender that has done business with you for many deals, he or she may trust your judgment and make a loan. That is the exception not the rule.
The problem is after the auction but before closing, you often do not have access to the property for inspections and appraisals. Also the auction time from is short, often too short to secure a loan.
Private money is essentially the only way. Anyway, that's how I do it. The regular lending process takes too long, and many lenders won't teven touch auctions.
Others are pretty much spot on. It's hard to use an actual lender for a Sherriff's sale or auction. Typically you'd acquire the property in cash (can be w/ an equity partner or your own capital of course). Once you're the owner of the property you can request a hard money loan for the rehab. You can do what's called a delayed financing -- you'll get the same loan terms as the purchase.