Foreclosure Auction Purchase With Quick Hard Money Cash-Out Refinance

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Foreclosure Auction Purchase With Quick Hard Money Cash-Out Refinance

A Northern California real estate investor purchases property at foreclosure auction and recaptures cash using 12-month fix and flip financing.

The investor bought the property at foreclosure auction in cash and wanted to quickly access 75% of the “trapped equity” from this property to go back to the auction and buy another property. Since the investor would be putting the house back on the market quickly, the goal was to keep the upfront costs as low as possible, which we did with a one point origination plus approximately $1,295 fees (document prep, processing, and broker price opinion (BPO)).

First Capital Trust Deeds secured an 75% LTV 12-month private money fix and flip loan for the experienced real estate investor.

The investor recaptured 75% of their cash trapped in the property and had cash on hand to acquire another property, starting the cycle all over again of paying cash at auction, refinancing to recapture 3/4 of the cash used to buy the next property. It’s a beautiful thing when it works like this. And now, we can complete the cash recapture process in approximately 5-6 days by using a title company that speeds up the process for active investors by guaranteeing title before the owner receives the Trustee’s Deed in the mail, which usually takes 2-3 weeks.

Foreclosure Auction Cash Recapture Terms:

  • $136,000 Loan Amount (75% LTV)
  • 12-Month Term
  • No Prepayment Penalty
Do you have a similar financing scenario?
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