Can you use hard money loans to buy foreclosures

[Donovan Curry]

Hello everyone, I'm a fresh newbie to real estate investing. I'm located in Austin TX and looking to invest in the metropolitan areas because I keep seeing location, location, location. Anyways, this is my first post and I'm scrolling on a wholesale website where foreclosures and motivated sellers are choices. I wanted to know if you can use a hard money lender to buy a foreclosure that needs minimal to no rehab?

[Tom S.]

@Donovan Curry If you're looking to buy and flip, you're going to lose money buying home with HML that doesn't need rehab. If you bought it at $100k, you're easily going to pay $3k in points and $4k in closing costs to buy, and then to resell could be another $6-8k. So ultimately losing $15k + in that transaction.

The value comes from buying and rehabbing, and forcing appreciation.

Hope that helps!