How to get cash for an auction?

Question

I am just starting out as an investor and was hoping to get some advice from the more experienced investors. In my area prices are going crazy high so I want to look into all avenues for finding inventory. One option is auctions. The problem is I only have 20000 in cash. Let’s say I find a deal at 50,000 at auction. What is the best way to bridge the gap? Hard money probably won’t work because they need an analysis and it takes time to get the money. Can anyone recommend a line of credit that would work for this situation? My credit score is very high (800+).

Even if I find a rehab project on the MLS it is tough to get a mortgage with a small amount. How do you get cash to buy a property until you can put financing on a property?

Brian Garrett · Answer

You'll need to either continue to save or find a private money partner for auction deals.

Casey Tyler · Answer

I do have a residence but there is not enough there. Friends and family is not an option either. I plan on purchase repairing and then put financing on the property and using for rentals. I am a former contractor so I can do the work (if required) myself.  Just would like to be able to have the option of having cash to bid with. There are other option than actions but I didn't want to limit myself. A private money lender will be tough because I am looking for my first property.

Thank you everyone for you input. I will have to figure something out.

James Thomas Nakashian · Answer

@Casey Tyler You can borrow from friends, family, close relatives. I don't know your situation, in that respect how easy it would be for you to get a credit line. But best and easiest way would be from friends, family, close relatives. It gives you more options on how to pay them back as well. You could pay them back once you sell the house, or give them a percentage of the deal so they make their money back and then some.

How to get cash for an auction?

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