Updated almost 10 years ago on . Most recent reply
Cash Only Auction Financing Options
I recently found a property that is up for auction and listed as "cash only" on Auction.com. The house is a solid house that has been foreclosed on and will likely sell for 80-120k (auction starting at 40k).
Here are my questions:
1. I have 20k in cash so I do not have enough for this investment. What are my financing options to get cash for this investment?
2. Will hard money lenders lend money on a cash-only auction?
3. Any other general suggestions or advice would be appreciated.
Thanks,
Brandon
Most Popular Reply
Yes a hard money lender may loan on an auction property but will you have access to the property, or enough information to give to them for a go / no go decision? In general any auction you had better have the money ready or a reliable known source of funding.
If it is an REO some banks will not let you finance if the contract says CASH, even if you use hard money and have the money to close on time. Stupid yes, but some banks are stupid.