Hey all,
The year has rolled around from my first foray into the wonderful world of REI, and I’ve recently put together a bunch of investors to purchase properties at the Tax Foreclosure Auctions here in Washington State. My trouble now is finding Hard Money Lenders that will loan at 60-80% LTV’s at an AUCTION! So here I am, seeking advice from the ‘Club’ to see if anyone knows of any, has worked with any, or has any suggestions on how to find the financing on Auction Sales.
Good question.
In my pursuits I’ve had no luck finding “commercial” type lenders that’ll loan for properties at the tax sale. Generally, lenders want to see a contract and verify the property (their collateral) before closing.
At the tax sale, you almost always have to close that same day. The lender would have to give you the cash prior to the sale and trust you with the money.
If there is a lender out there who’d do this… I’d make them rich. I’d love to meet them.
Guru,
That’s the same I’ve been finding, I do know of a couple of ‘lenders’ who work with Foreclosure groups at sheriff sales, but they charge 12% interest, a couple of points and then the ‘service’ cost 10% of the Tax Accessed value of the house. So I was hoping to see if someone had an ace that could or would eliminate that extra 12-25k on the loan.