Posted by John B. Corey Jr. on September 25, 2005 at 18:22:00:
Robert,
You are correct that a hard money loan will not work for an auction. I know of one guy who does something similar but it really is different than you are thinking.
The key here is the HML will not release funds until they have a lien on the title. You can not bid unless you can show liquid funds (cash or cashier’s check mostly). You do not even know if you will win.
A bit of chicken and egg only worse.
John Corey
Chelsea Private Equity LLC