Hard Money Lenders

Hello, I am in California and I am going to the tax lien auction in a few weeks. This would be my very first time going and I have no idea what to expect.

My questions are about Hard money Lenders:

Do they like to see that you have a deal in your hands before they give you the money? So if I were to go to the auction and let’s say I find a deal for 40 cents on the dollar, do I then go to them and apply or should I set it up before hand.

Also, what do I need to get qualified? I have really good credit around 725-750, do I have to show income?

Your information is very much appreciated!!


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I haven’t heard of hard money lenders who lend for tax liens. Maybe I’m missing something but they usually lend on purchase so they can be in first position.


 As far as getting qualified, I have never borrowed hard money, but I did inquire as to the process with a HM lender years back.  I would have had to set up a corporation or LLC of some sort to borrow and could not borrow the money in my name due to the fact the interest rate charged would have been deemed usury (an illegally high rate to charge an individual)

You may want to inquire with your HM lender to see if the same applies.

I’ve talked with many HML’s over the weeks and most do require 1st position and also will not give you the money up front. All I’ve talked with wanted you to be an LLC (which I am anyways) and they would pre-approve me for a set amount of money, which you can use to make purchases at auctions… This is for buying the property not tax liens, so I"m guessing you might have a tough time with them for this sort of operation. Granted I’m no expert but have yet to see any that I have dealt with even offer that option. Of course being in Ca. you have a ton more options compared to here in Ga., very few local lenders this way. Heck most want you to have so much available money that if I had that money I wouldn’t need them in the first place.