I'm VERY new to real estate investing. I am currently flipping my first house near Toledo , Ohio. I bought the house at Sheriff sale and could not get financing, so I had to put up cash. I'm wondering if you can get financing anywhere in this situation and also trying to figure out ways to purchase pre-foreclosure(prior to going to sheriff sale). Remember when answering, I am VERY new, so please keep it simple for me.. :) Thanks
Usually, you can't get financing for an auction. Most lenders will require an inspection ,an appraisal and title insurance. Most of the time you can't get one or all three of those requirements. So, everyone has to pay cash. Occasionally, you can get transnational funding for an auction property, but you'll still have a long term issue if you can't get title insurance due to the nature of the auction. In that situation, you either have to have the cash or a partner that has the cash.
If you buy pre-foreclosure and there isn't equity in the property you would have to buy it as a shortsale, which can take a long time. If there is equity, you would have to convince the seller to sell it to you instead of going to auction.
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