Sources Of Cash For Auction?
I have been buying houses in preforeclosure for the past several months, but have never bought at the steps.
Alas -- there is a beautifulhouse that I was trying to negotiate a short sale on and I just was not able to close the deal before it made it to the steps.
The house will go to auction today -- on a stormy day in a county where the auctions are already sparsely attended -- and it kills me to think of the $80K in equity that I am giving up on a PERFECT house that I have been inside of, taken pictures of, had appraised, have permenant financing lined up for, etc -- simply because I do not have the cash to do the deal (my state requires cash in hand). There is zero risk in the buy -- unlike some other people who go to the steps, I know EVERYTHING about this house.
So my question: Does anyone have any suggestions on where to get cash to buy at auction for a person who does not have that kind of liquid capital?
Hard money lenders obviously want a security deed against the property -- but I can't give them that until I actually buy the house -- in the mean time, it would be unsecured cash. I do not want another one like this to get away, if there is a way to make it work in the future.
Thoughts?
Borrow the money from a private party lender at an interest rate 3-5% higher than a bank CD and secured by a first mortgage.
Borrow the money from a hard money lender.
Tap into a home equity or other line of credit.
Refinance another property to get the down payment and borrow the balance from a lender.
Bring in money partners to fund the deal.
Find houses that have sold in the past.
You can do this by simply searching the public records at the county recorder's office.
Find houses that recently sold to real estate investors by banks, HUD, VA, FNMA, etc.
If the buyer is not an individual (i.e. a corporation or partnership) then you just hit your bulls-eye.