Private or Hard Money for Auctions?

[Ryan B.]

I've been looking in Snohomish County, WA and see what could end up being good deals going to auction in the coming months. Anyone have experience with seeking private lending or hard money loans for auctions?

Goal would be to find one requiring light rehab, rent it out, season, then refi into a traditional product. What type of loan would allow this, anyone have experience with doing this? 

[Nghi Le]

@Ryan B.

They make you pay a fee upfront when you purchase, they make you use their sister HML company for the financing, and they ask that you list the property with them when it's done. That's how most of them make their money.

Most of the local HML do finance the purchase at auction.

Whether you should be buying at auction is the next question... I don't recommend it, especially for your 1st deal.

Check out this thread:

https://www.biggerpockets.com/forums/12/topics/496385-advice-for-newbie-flip-wont-profit