how do i set up financing to pay for properties that i may win at tax sales auctions? types of loans, pros & cons of each. have researched and been attending auctions but now need to determine best type of loan to get as well as which one will have the funds available asap. all suggestions would be greatly appreciated.
Howdy Ita:
Tax sales are hard to get financing. Most owners have the right to redeem the property after the tax sale plus most title companies will not insure the title. You will need to find private investors to finance them and even then you may have a hard time.
LOL
thank you for your input. what are your thoughts on “personal loans” and “home equity - line of credit”?
Howdy Ita:
I would borrow any way I could for a good deal. If the owner does reclaim here in Texas they have to pay 25% for 1 day or a year and 50% for a year and a day up to 2 years on their homestead. Only 6 months for others. Even credit card money is OK for deals like this if you can find them
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actually live in texas as i see you do, had planned to go to new braunfels this weekend, but family coming in so will save that for another weekend. back to business- i do appreciate your taking the time to respond, yes, found an excellent property going up for sale, even wrote current owner a letter, waiting for their response but need to set up the financing. very new at this and getting quite an education, enthusiatic and encouraged that others have been successful as i read the forums. thank you again.