How do I get some CASH?


#1

I found a house that I think might be a deal.? The owner has 1st and 2nd mortgage… the first mortgage’s balance is about half the value of the house… 150k.? I talked with owners today… I don’t see anyway a short sale can be beneficial to them.? The auction seems like the deal if it can cancel the junior.
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What is the best way to get a hold of some cash to purchase at the auction?? The max amount of cash I can put up is 100k and?50k from my father… might not be quite enough.? I have my house paid off(approx 185k), but?another?cash out mortgage is not an option w/ a wait of 30-45 days.? Any other ideas or are you pros just loaded??
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I also have 20k in cash… will they take this at the auction steps??


#2

Rick - I’m not familiar with the auction process in Georgia, so the first thing you should do is make sure the foreclosure or sherrifs auctions in your state require cash payment in full.
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If they do, I would think they would have to accept cash, I know they do here in CA, though I wouldn’t advise it given the areas some of our courthouses are located in. :slight_smile:
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If you can’t put the money together yourself, or with the help of friends, you might consider approaching one of the buyers on the courthouse steps. You want to be really careful in this, as you don’t want to get ripped off by some huckster. But I have helped a number of people buy properties at auction in exchange for a few bucks. Deal usually looks something like this: you put up $50k as a non-refundable down (perhaps in escrow, or with an attorney with clear instructions as to what happens if I or you fail to perform). I purchase the property and give you 15-30 days to come up with the rest of the cash (or financing) and complete the deal. If you fail I keep your $50k. If you perform, we complete the sale, you now own the property, and I get paid a few buck (maybe 5-15% depending on the property, and the amount of cash I have to put out).
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Most auctions have at least one guy in the crowd that regular does these quick flip deals (some call it wholesaling). I didn’t do a lot, but it wasn’t a bad way to make a buck when I wasn’t interested in the property myself.


#3

Thanks Sean,
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That new law about not being able to get a mortgage for 6 months if you initially buy the house for cash sucks.? I finally found a bank that could get me a fixed rate home equity loan for a good amount in a week’s time.
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I think I have all my bases covered.? Got a lawyer doing a title search and walk through inspection scheduled.? I just hope I don’t get bid up at the auction.