Private Money for Sheriff Sale

[Dalton Dellinger]

I had an idea: drawing up a contract for a private money lender so we could use private money to buy properties at a sheriff sale. It would say something along the lines of "Private Money LLC agrees to lend $500,000.00 to 123 Investor LLC for the acquisition of investment properties at 12/01/2022 Sheriff Sale at 123 Main Street in Springfield, Indiana. If a property is acquired, then a 2nd contract will be created and signed based on the specific property. If no property is purchase, 123 Investor LLC will return all capital plus $500 for a convenience fee to Private Money LLC." Something along those lines. Does anyone have any recommendations? I'm in Indiana if that matters.

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Dalton Dellinger:

Quote from @Chris Seveney:

@Dalton Dellinger

You just need a relationship with a private lender as typically at sheriff sale ou put a percentage down. Since that is at risk a private lender would require that to be put down by you but offer a line of credit to you

Be aware they would want a personal guarantee and your first born if it goes upside down and want you to have assets as well to collateralize

Yes sir I agree. A relationship with the private lender is key. And i did think about using my other properties as collateral. If I'm understanding correctly, at our local sheriff sales, we have to put up the entire purchase price of the property, not just a percentage. 

 Depends on location, some want cashiers check at sale, others want deposit and funds within specific period of time. 

Indianapolis is as described above full purchase price bid in cashiers check at the sale ..  IRS liens I would not worry about I have bought many many properties with IRS liens and they sunset in a few months automatically .. I have never had IRS redeem ever.. if they do you get all your money back plus a statutory interest.  Although keep in mind any work you do on the property will not get reimbursed so dont go doing a full gut reno until the sunset period extinguishes  but some of the very best deals I have ever gotten had IRS liens and those scared 90% or more of bidders away .. Also bidders that were using HML whose model is to put a new mortgage on the property as soon as you receive the Sheriffs deed and since you have this lien they cant get title insurance so those guys wont bid or participate either.. I would search out IRS liens and target them when I was active in this area..  Ohio has some of the most friendly foreclosure laws there you only have to put up a modest deposit and dont have to pay for the balance until the judge rules and you can get title insurance at that time except IRS.