Sheriff Sale Financing
Hey everyone,
We recently won a property at sheriffs’ sale. The property is a result of a reverse mortgage foreclosure on a deceased family member. We had our hard money lender set for the loan, but ran into two obstacles from my partners’ background check that prevented the loan from going through. The first partner (my father) was the executor of the Estate which somehow made the transaction not an arms length transaction (which can still be done, but stricter guidelines), the second obstacle is I found out my other partner has a sub 600 credit score due to some missed payments on a few rental properties a few years back. These two obstacles have caused the loan to fall apart, Thinking we have to bring in another partner and either pay interest or equity in the deal. We are also thinking about wholesaling it completely to another investor. We have to work this deal one way or another due to the fact that we put down 30k non refundable deposit at the sheriffs sale.Here is the breakdown of the numbers.
Purchase: 155k
Rehab: 30k
Taxes: 6300 (annual)
ARV: 235k (independent appraisal completed during hard money application)
We have already completed the appraisal & title work as a result of the hard money deal going so far through the process.
Does anyone have any advice on creative ways to finish closing this deal?