Can I Use A Hard Money Lender??
Can I use a hard money lender to purchase properties at the court house? I'm in NJ and here once you're the highest bidder you must deposit the 20% of your bid and they'll give you 30 days to pay the rest.
Anyone from NJ that has done this?
Thanks.
HM lenders typically want a 1st position lien for there money.
If you have something esle w/ sufficent equity, sure.
When you say "..if you have something else.." what exactly are you talking about.
Does that mean that they wont lend for that kind of purchase, courthouse.
If the foreclosing lien is in a 1st position, you probably could. You'd have to come up with the 20% ahead of auction. Then if the LTV after your 20% down is around 60% or less of ARV you should be able to find a HML. Know your exit strategy before going to the auction.
If the foreclosing lien is in a junior position, you'll probably need another property you own with good equity to secure as additional collateral.
No point beating around the bush waiting for an answer here. Why not just talk to some HML's in your area? Then you'll hear it straight from the horse's mouth. Let us know what you find out here so we can all benefit.
ok. I'll do that.
Thanks guys.