Hard Money for Online Auction Purchase - Questions

[Orion Walker]

Hi Folks,

I'm looking to flip a bank owned property up for auction on Hubzu. I've discussed deals with hard money folks but haven't actually gone that route yet. Seems like there might be some additional challenges given the time frame with an auction. The listing does say financing will be considered, so it seems they do allow for some time after close of auction, but either way you have to put 15k on the line as earnest money. 

Anyone have experience on this? Will a hard money lender typically lend for an auction property given that you won't be able to do an appraisal etc? I going to do as much due diligence as possible over the next few days before auction closes.

Hubzu wants 15k as earnest money, how does that factor into what the hard money lender will want me to put into the deal? I'd like to go with a lender that will do 90% of purchase price (about 190k). I have someone who will fund the rehab, so I don't need that to be part of the loan, but if including repair costs is an option we might go do that to keep our funds available. 

From talking to some hard money folks previously I'm expecting interest rate at 9+, maybe 3 points, and interest only payments on a 6-12 month loan. Does that sound about right?

Thanks!

[Wayne Brooks]

Just sayin'....."if my agent knows the lock box code today, it probably won't change after the bid closes".