Ready to Dive into My First REI Purchase—Auction Property with Hard Money or DSCR? An

[Jacqueline Wright]

Hey everyone,

I'm a first-time real estate investor and have been planning my first property purchase for years. I've finally found an auction property I'm interested in, and I’m ready to make a move! The property will be strictly for investment purposes, not a primary residence.

I’ve been looking into two potential financing options:

1. Hard Money Lenders (HML) – I’m drawn to this option for its speed in closing, but I know the rates can be higher.
2. DSCR Loans – This seems like a great option for long-term rentals, but I’m unsure if it’s the right fit for my auction property since it might need some rehabbing.

I’m also considering purchasing through a land trust or an LLC to add a layer of protection and privacy.

So, my questions are:

• What’s the best way to approach financing for auction properties?
• Can anyone recommend hard money lenders who specialize in working with first-time investors?
• Has anyone used an LLC or land trust for their first property purchase? How was your experience?

I’d love to hear your thoughts and any advice you might have. Thanks in advance for your insights!

[Tom S.]

@Jacqueline Wright  Every auction is different so the first items to check: do they allow financing if you win the auction?  Can you get access to the property in advance to verify the condition?  I looked at a few auctions  in the past, but they were cash only.

Good luck!