Question, questions…questions…That’s all I have as a newbie.
I live in Delaware and I’m looking at some properties that are going up for auction on 8/2.
There are two properties i’m looking at.
Listed price as follows
- 195k Appreciated value= 265
- 181k Appreciated value= 230
To make purchases at the auction I would need 20% down in the form of a cashiers check, cash or personal check that very day, which I don’t have. I was thinking about using a HML but I’m not sure how and if they fund these sort of deals.
Any thoughts on getting the financing for these deals would be greatly appreciated.
Oh…I hope to make a quick flip on the properties 2-3 months. Neither home needs much repair/upgrade work.
I’m not aware of any lender (even a HML) who will front you the 20%. They are just not going to put that money out there for you without having some collateral right then at the moment they cut the check.
If you could come up with the 20% some other way, you should be able to find a HML to finance the balance, assuming you’re buying the properties right.
What you really need to do is build your own “private bank.” You need to find investors who are willing to earn 12% to 15% on their money, then use that cash to finance your deals. You may have trouble getting someone to front you that 20% still (you’re asking them to give you money when there’s not even a formal deal on the table), but if you can convince them you’re not a crook (maybe ask them to go to the auction with you?), you could be OK.
Thanks for the reply Paul Broni. I definitely hear what you’re saying and pooling together a couple of other investos is an excellent idea. I actually got a friend of mine to front me 30 grand. Can you believe it. First deal and all. He’s an accountant so we’re going to sit down and he’s going to look at the numbers I’m proposing.
This site is the best and I’ve recommended it to about 5 others already. Keep the good stuff coming.