Financing options will be provided by the company’s “preferred lenders” and will count toward a buyer's proof of funds – a requirement for bidding on all properties offered for sale on the Auction.com platform. Currently, the company has helped sell more than $26 billion in residential and commercial assets.
“This initiative is directly aligned with our core business strategy, as it allows us to increase our audience of potential buyers, improve our ability to get sellers a fair price for their properties, and expand upon our position as the nation’s leading online real estate marketplace,” said Jeff Frieden, CEO of Auction.com. “Financing is a core component of most real estate transactions.”
The Auction Finance program will feature lines of credit from $500,000 to $5 million for residential investment and the funds can be used for qualified residential investment properties in California, Texas, Georgia, Florida, Illinois and Washington.
According to the site, the lines of credit will be made by Archetype Credit Opportunities Funding and are for investment purpose only and not for personal, family, or household use. Archetype does not offer lines of credit or loans on residential property that is or will be owner-occupied, according to the website.
Auction.com currently partners with Chase, Bank of America, Greenlight and Nationstar Mortgage to provide financing on residential auctions of owner-occupied homes, second homes and investment properties. The owners of properties up for sale on Auction.com sometimes offer financing.
According to a disclaimer on the company’s website, Auction.com and its Auction Finance division do not offer financing.
In an effort to increase its pool of potential buyers, online real estate marketplace Auction.com has launched Auction Finance. The new division will “facilitate” financing for commercial and residential real estate investors.