Hard money for auctions?

[Kevin Schultz]

Hi all, new to the BP community with my first post here. I’ve done a lot of research on hard money loans lately. I’m looking to buy my first rehab for rental. I’m curious if one can buy property at an auction with hard money. How does that work with having to pay points and potentially not winning the auction? If the auctIon requires funds in cash, you’d have to have the funds there with you, which seems expensive if you dont end up acquiring the property... Does this prevent hard money lenders for lending on properties to be bought at auction? Thanks for responses in advance.

[Christopher Phillips]

@Kevin Schultz

Welcome...

Auctions are generally cash. Especially the court house step or sheriff auctions. That means cash on the spot.

Hard money requires inspections and an underwriting period (even if only 5-7 days). Auctions don't allow that.