Private Money Lender for Foreclosure Auction Loans in Phoenix, Arizona
For nearly a decade, Capital Fund 1 has been lending money to qualified borrowers to complete real estate projects. One type of financing we offer is a trustee sale loan for foreclosed properties. In fact, Capital Fund 1 has funded hundreds of these loans over the past nine years.
If you want to purchase a piece of property that has been foreclosed on to fix and flip a home, trust our experience in the financing industry and let Capital Fund 1 provide you with the funds you need.
How Do Trustee Sale Loans Work?
When a loan is closed on a property, a deed of trust (DoT) is recorded serving as an agreement between three parties: the borrower, lender, and trustee (an uninterested third party, such as a lawyer, a real estate broker, or a title company). If the borrower goes into default and does not become current with their payments after 30 days, the lender will alert the trustee. The trustee will then begin the foreclosure process.
The trustee works with the lender to determine a starting bid amount. Then a date is determined when the foreclosure auction, or trustee sale, will take place. On the day of the trustee sale, potential buyers bid for the property at the predetermined starting bid amount, and try to outbid the other real estate investors. The winner of the auction will be given 24 hours to come up with the financing of the property. At this point in the process, Capital Fund 1 is able to assist the winning buyer in regards to financing the purchase of the trustee sale.
Who Qualifies for a Trustee Sale Loan?
As an asset-based lender, we do not conduct credit checks or other invasive and time consuming checks for a loan. All that the borrower will need to take care of is submitting their request, the doc fee, and, once the terms are accepted, their monthly payment.
Since Capital Fund 1 does not do credit checks, they underwrite the property in house to come up with a loan quote. This allows them to provide same day loan quotes for trustee sale loans. Once the borrower agrees to the loan amount and the terms that go with it, our team services the loan and is able to provide financing on time. Since Capital Fund 1 has been providing trustee sale loans since 2009, they have not missed a closing for trustee sales.
Different Types of Trustee Sale Loans
There are two different types of trustee sale loans that have various benefits. Our in-house underwriters can help you decide which of the following is most beneficial.
Trustee Sale Loan
Hard Money Loan
|If you need a loan with relatively short terms, you should choose a hard
money loan. They are intended to rapidly facilitate the purchase of properties
or land for an investment endeavor or individuals who had difficulty receiving
funding through conventional lenders. We provide rates between 9.9 and
15.25 percent, which are typically dependent on the length of the loan term
and the amount of the borrower’s down payment.
Fix and Flip Loan
|Fixing and flipping a real estate property is a profitable venture that has
gained popularity with the rise of reality TV. Fix and flip loans are
characterized by having no prepayment penalties, a short repayment period,
and an interest rate of 9.9 to 15.25 percent.
Things To Consider When You Buy From a Wholesaler
When you receive a trustee sale loan to purchase a foreclosed property, potential buyers will provide their offers based on the wholesaler’s asking price. The benefit of this method is that the price of a wholesale property will most likely not increase, so you can offer lower than the asking price. However, you won’t know what other people are offering, but you could ask the wholesaler about the typical offer amount to determine what you are willing to spend. At this point, you have a better idea on what kind of profit you would make, based on the purchase amount and potential renovation budget.
Apply for a Trustee Sale Loan
You can trust Capital Fund 1 because we are backed with years of experience and innovation in the real estate industry.
Please keep in mind the following factors about Capital Fund as a company:
- We are an asset based lender
- We don’t check credit
- We don’t ask for personal tax returns
- We can fund start to finish in 24 hours
- No prepayment penalties
Capital Fund has an extensive knowledge about real estate investing and needs to be used as a resource that you or your clients use.