Hard Money for Auction

4 Replies

Hi All, I have been watching a deal on Hubzu that seems like a clear win. The home ARV would be $550k-$600k and I believe I could win the auction for $380k. The house was built in 2003. My question is the auction is ‘cash only’ and I don’t have that kind of money laying around. Does anyone know of a hard money lender that would float money to purchase an online auction property? After the purchase I would do renovations and refinance. Do you know if a ‘hard money lender’ would be considered a ‘cash only’ purchase or would that not qualify as cash for an online auction? I appreciate any advice. Jon

It will be tough to find a HML who can fund the deal fast enough for an auction property.

Auctions typically require full payment, in cash, within 24 hours of the end of the auction.

You would need to get pre-approved with a HML and have the funds already available.

Otherwise you could find a private money lender or partner to take on the deal as well.

@Scott Rogers Thanks for the note. I currently have about $70k in equity from other properties and access to another $30k in cash. Coming up with the other $300k for the temporary flip is the challenge. The online auction keeps getting relisted and is quite the tease.