There is a property that I’m very interested in acquiring at a sheriff’s sale. I’ve currently got 4 houses in various states of rehab and most of my capital is tied up in these. Even if I obtained a LOC against these 4 projects, I would still not have enough to buy the property.
I’ve contacted tow of the lenders on the hard money list and am waiting for a response. Is the fact that it is a sheriff sale propety a problem?
This project has tremendous income potential because it is a two story house in booming area with only the 1st floor built out. The city’s appraisal does not take the potential into consideration.
Howdy Brucew:
You need to check to see if the owner has the right to redeem the property and if so how long after the sale. Some tax and sheriff sales give the owner the roght to step in and pay the sales price plus a penalty and get the property back.
Also some sheriff sales the sheriff just takes the property and sells what ever interest the owner has if any. I went to a sale once where the seller had already sold the property and a new loan had even been recorded. The sheriff sold the property and the buyer at the sale got nothing. Eventually the money was returned but what a hastle for the buyer.
Thanks for your response. I’ve checked everything out and the owner vacated the property approx. 1 year ago, so I don’t beleive he has any interest.
My real question is about arranging for financing on something like this since there is no contract to take to a lender.