Private Loan for Auction Win - Unable to get Appraisal & No B.C.

[Keith Grayson]

Hello BP community,

My name is Keith, and I recently won an investment deal on Auction.com. The final bid was for 125K, and the property's resale value is between 189 - 199K.

The property is in the foreclosure process, but the previous owners are still living there. My current Hard Money Lender requires an appraisal, but I'm unable to get one, due to the home being occupied. I wanted to use my Business Credit Card for a down payment, but the lender wants the cash funds in the account (new Business Credit Card - I have to wait a time period to transfer a high credit amount to an account). I'm not sure what to do at this point. Is this invest a loss (new investor mistake - lose $2,500 deposit), or can this deal be saved?

Keith

New Investor

Keith Grayson,

[Shannon Wright]

Without knowing the terms of the contract, my suggestion if you are trying to get out of the deal is to use to inability to get an appraisal, which in turn is your inability to get a loan. This might get your EMD released, again depending on the contract terms.