Having problems finding funding for a courthouse auction

[Willie Webb]

Hello BP community! Hope everyone is having a wonderful weekend. As I stated in the subject, I am having problems coming up with funding for a courthouse auction. I found an AMAZING deal that will be coming up for auction VERY soon. The problem is, that I have the bulk of my assets tied up in another deal. I have spoken with my hard money lenders, and they are willing to fund me, but only "AFTER" I have won the auction.

Now, on the other hand, the main problem is that this is a courthouse auction. In my county, you have 24 hours to fund the remaining balance for a courthouse auction. It isn't like auction.com where you have at least 15 days to pay.

I have enough money to cover my deposit. I want to stay disciplined on this auction and not let emotions get involved. My deposit has to be at least 5% of what I am anticipating my maximum bid to be. If I win this auction and I do not come up with the remaining funds, I will lose my deposit.

I have run the numbers several times, and this deal would be profitable as a flip, or a buy & hold. It would be a minimum of a $60k return (pre-tax) as a flip. Now, as for a rental property; prior to cap-ex, the returns would be 2.8% if I acquire the property at my maximum anticipated bid. 

I compiled a detailed project outline on how everything would go from start to finish; I even listed the exit strategies - but I still don't have any bites. Am I going about this wrong, or is there a step along the way that I'm missing? I look forward to hearing everyone's feedback and opinions. Do not hesitate to be brutally honest. Have a great day everyone.

Regards,

Will

[Wayne Brooks]

Two things; 1) you're not going to find auction funding unless it's a partner type situation where you already have a history with that money guy.  2) Don't get too excited assuming you're going to be able to buy an auction property for a certain price, we all know how competitive the auctions are and the pros won't leave any "easy money" laying on the table.