SHOULD I SEEK OUT FINANCING ON A POSSIBLE AUCTION PROPERTY BEFORE OR AFTER AUCTION?
Hello, very new to flipping but I found a great deal and think now it’s the best time to start. The property will go into auction in a week. 10% down due on site and full payment required in 30 days
SHOULD I SEEK OUT FINANCING BEFORE OR AFTER AUCTION?
Also, how could I go about getting this deal financed? I have properties with very strong equity I could use as collateral. I know refinance and heloc are options but I have a 3% interest I do not want to lose and I ve been getting rejected on heloc for investment properties.
any help would be appreciated
Hi There!
Can't comment on when you should get the financing in terms of the auction, but hard money lenders or even private money lenders can close on funds in as little as two weeks. So as long as the deal is actually a deal, you shouldn't have trouble getting financing for it. I usually run through the deal with the loan officer prior to going out on properties so I know I have the funds/approval to close when needed.
Also in terms of HELOC, I've heard its hard to get on one investment properties. I actually live in a high appreciation market and capitalized on getting a HELOC on my primary while home prices were sky high(still are in my market), with the purpose of using the line for investments. Hope this helps!
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#1 Foreclosures Contributor
- Real Estate Professional
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@Eunice Villarroel You’ll only have 30 days, which would be tight if wait. Talk to lenders now, establish a relationship with one…ask them what you can provide now, to speed the process when you’re ready.
Most auctions require funds with in 24 hrs and don't like loan contingencies, what site is this through?
it's good to get your pre-work done for a lender as their terms can change based on your experience with investment properties, credit score, rehab budget, and appraisal. HML also vary a ton on how they do or if they need appraisal.
Good luck at the auction!
Quote from @Eunice Villarroel:
Hello, very new to flipping but I found a great deal and think now it’s the best time to start. The property will go into auction in a week. 10% down due on site and full payment required in 30 days
SHOULD I SEEK OUT FINANCING BEFORE OR AFTER AUCTION?
Also, how could I go about getting this deal financed? I have properties with very strong equity I could use as collateral. I know refinance and heloc are options but I have a 3% interest I do not want to lose and I ve been getting rejected on heloc for investment properties.
any help would be appreciated
Hi Eunice,
Do you own any other properties? You could just cash out refi or get a HELOC to buy these properties, if the requirement is to buy in cash.
You could also get a hard money lender to finance this in 7 days.
