Finding a lender to buy owner occupied property at auction

6 Replies

Our dream property came up for sale but it is through an online auction.  We will have 30-45 to close but there can be no contingencies.  

How can I find a lender to fund this for an owner occupied property? 5 of our rental properties are owned out right, could we get a portfolio lender to lend on them so we would have "cash" for the auction?

Are there hard money lenders that will lend on owner occupied properties and then we can refinance it into a regular mortgage in 6 months to a year?

Does anyone know of the best strategy or lenders that would loan on owner occupied properties in Minnesota?

No hard money lenders, that I've seen, lend for owner occupied. What is the condition of the property? If you have 45 days to close, you could, possibly, get conventional financing if it can pass an inspection. Equity loan or line of credit on your current properties is probably the quickest and most seamless way to do the deal. Then finance out after a few months into a conventional loan.

If you have 5 props owned outright I would definitely recommend a cash out on them. You could do 70-75% cashout and that will take 30 days. Once the cash in your account you control the auction closing and know there won’t be issues which can happen with a lender. Also as mentioned hard money will only lend to non owner occupied.

Why are you worried that you won't be able to get a conventional loan for this property?  If you have 30-45 days to close, why isn't this sufficient?  

Just because it says no contingencies I don't know if I could go through a conventional lender.  Since I would need inspections, appraisals, etc.  And I asked my realtor and she said it was a cash only auction.

The property appears to be in good condition, it is just dated.

@Terri Dyer

Terri, I was at a real estate meetup in Bloomington, MN and ran into Hendrie Grant. He is a hard money lender who touts being able to find hard money within 48 hrs if the need arises. I doubt his money is cheap, (3% acquisition fee, 10% interest if my memory serves correct) but he's fast. That sounds like your main concern at this point in time. His LinkedIn page is:

As a disclaimer, I have not affiliation with him of any kind and have not used him.  I have no reason to doubt he can get things done, however.  

Good luck.  Feel free to DM me if you have more questions or need alternate ways to get in touch with him.  

-Josh Collins