Trouble finding Hard Money for Foreclosure on 5+ Unit Property

[Brandon States]

Hey BP!

I've searched for days and haven't found this situation. My plan is to win the Sheriff Sale and gain control of the 5+ unit property. I will have 30 days to pay the remaining balance and this is where I need the help of hard money. The issue is that I wont be able to see the inside of the property within those 30 days. This means no interior appraisals until the title is transferred into my name. The property is undervalued so with purchase price and repairs it will be no problem for that total to be under the 70% ARV for a longer term loan. I'm looking for help with figuring out what my options are. Has anyone been in this situation and if you could point me in the right direction it would be awesome!

[Aaron Pfeffer]

I think plenty of HMLs will fund with no interior inspection (we do it here if necessary), but it all depends on the leverage you're asking. If the leverage is low enough, not a big issue, especially if you intend to do work to the property after picking it up. The issue becomes asking the HML to carry the weight. Meaning...you mention the property is undervalued. That's all well and good but if it's one of those conversations with an HML where you are buying for $250,000 but claim it's really worth $300,000 (even before repairs) so you want the HML to carry the difference of that valuation AND they can't get inside...yeah, that can get tough. Keep the leverage low and "carry the weight" on your side and plenty of HMLs will fund the deal. But if that's not possible, raising private capital and giving away more of the deal may be the only route. Best of luck.