BUYING WHOLESALED PROPERTIES OR AUCTIONED PROPERTIES

[Lawrence Smith]

OK, so I am a fairly new investor from Washington, DC  an I am realizing that most of the worthwhile deals in the city are auctioned properties or wholesaled deals which require "ALL CASH" offers. Since I am fairly new I don't have enough to purchase these deals with Cash. I am wondering is there anyway to finance these deals maybe with either private money or some type of loan ? I apologize in advance if my question seems scattered but it must be a way to get this 'ball rolling".

[Jon Holdman]

The details of "sheriff auctions" (aka trustee auctions) vary from state to state.  But its pretty common that they are "cash on the barrel head" right on the spot.  They are here in CO.  Its possible to get a loan for those.  But your lender is going to have to go to the auction with you with money in hand, usually in the form of cashier's checks.

When a seller says  "all cash", there could be several factors in play.  One is the property may be too junky to qualify for a loan.  Another is they just don't want to deal with the lending process.

A strategy is to accumulate enough cash to buy such deals, then turn around and refinance them shortly after the purchase.