{"id":2986,"date":"2025-08-29T08:46:19","date_gmt":"2025-08-28T23:46:19","guid":{"rendered":"https:\/\/wi-th.com\/?p=2986"},"modified":"2026-07-15T18:15:52","modified_gmt":"2026-07-15T09:15:52","slug":"building-auction-loans","status":"publish","type":"post","link":"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/","title":{"rendered":"Building Auction Loans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewbox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewbox=\"0 0 24 24\" version=\"1.2\" baseprofile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#%EA%B1%B4%EC%B6%95%EB%AC%BC_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C%EC%9D%B4%EB%9E%80\" >What is a construction auction loan?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#1_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C%EC%9D%98_%EA%B8%B0%EB%B3%B8_%EA%B5%AC%EC%A1%B0\" >1. Basic structure of an auction loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#2_%EC%A3%BC%EC%9A%94_%EC%A2%85%EB%A5%98\" >2. main types<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#3_%EB%8C%80%EC%B6%9C_%EC%A2%85%EB%A5%98%EB%B3%84_%ED%8A%B9%EC%A7%95\" >3. Features of each loan type<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#1_%EA%B2%BD%EB%9D%BD%EC%9E%94%EA%B8%88%EB%8C%80%EC%B6%9C_%EC%A6%89%EC%8B%9C_%EC%9E%94%EA%B8%88%EB%8C%80%EC%B6%9C\" >(1) Meridian Balance Loan (Instant Balance Loan)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#2_%EC%82%AC%ED%9B%84%EB%8C%80%EC%B6%9C_%EC%86%8C%EC%9C%A0%EA%B6%8C_%EC%B7%A8%EB%93%9D_%ED%9B%84\" >(2) Post-loan (after ownership is acquired)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#3_%EB%B8%8C%EB%A6%AC%EC%A7%80%EB%A1%A0_Bridge_Loan_%EB%8B%A8%EA%B8%B0_%EC%9E%90%EA%B8%88\" >(3) Bridge Loan (short-term funding)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#4_PF%C2%B7%EC%82%AC%EC%97%85%EC%9E%90_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C_%EB%B2%95%EC%9D%B8%C2%B7%EC%83%81%EA%B0%80%ED%86%A0%EC%A7%80\" >(4) PF - Business Auction Loan (Corporate - Storefront\/Land)<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#4_%EB%8C%80%EC%B6%9C_%EC%A1%B0%EA%B1%B4\" >4. loan terms<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#5_%EC%A0%88%EC%B0%A8\" >5. procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#6_%EC%9C%84%ED%97%98%EC%9A%94%EC%86%8C_%EB%8C%80%EC%B6%9C_%EA%B1%B0%EC%A0%88%ED%95%9C%EB%8F%84_%EC%B6%95%EC%86%8C_%EC%82%AC%EC%9C%A0\" >6. risk factors (reasons for loan decline\/limit reduction)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#7_%EC%9C%A0%EC%9D%98%EC%82%AC%ED%95%AD\" >7. Notes<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#8_%EC%8B%A4%EC%A0%9C_%EC%98%88%EC%8B%9C_%EC%8B%9C%EB%AE%AC%EB%A0%88%EC%9D%B4%EC%85%98\" >8. Simulate a real-world example<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#9_%ED%99%9C%EC%9A%A9_%EC%A0%84%EB%9E%B5\" >9. Utilization strategy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/wi-th.com\/en\/finance\/building-auction-loans\/#10_%EC%9A%94%EC%95%BD\" >10. summarize<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"%EA%B1%B4%EC%B6%95%EB%AC%BC_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C%EC%9D%B4%EB%9E%80\"><\/span>What is a construction auction loan?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Borrowing money from a financial institution using a building (including a house, storefront, or land) that you won at auction as collateral.<\/li>\n\n\n\n<li>Mainly <strong>Based on the winning bid<\/strong>and because of the nature of the auction, they are sold below market value, resulting in a lower **LTV** than a regular sale.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C%EC%9D%98_%EA%B8%B0%EB%B3%B8_%EA%B5%AC%EC%A1%B0\"><\/span>1. Basic structure of an auction loan<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Purpose<\/strong>: Paying the balance on a property you won at auction or securing post-auction funds.<\/li>\n\n\n\n<li><strong>Differences<\/strong>:\n<ul class=\"wp-block-list\">\n<li>For regular trades, the <strong>Bank review after confirmation of purchase and sale contract + deed<\/strong> \u2192 Loans.<\/li>\n\n\n\n<li>The auction is a <strong>Court auction \u2192 Before ownership transfer<\/strong>Need money for \u2192 loan structure is different.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Collateral Valuation Criteria<\/strong>\n<ul class=\"wp-block-list\">\n<li>View appraisal, winning bid, and market price together <strong>By lowest amount<\/strong>to calculate the loan limit.<\/li>\n\n\n\n<li>(Example: Appraised value 500 million, market price 4.5 million, winning bid 3.5 million \u2192 base 3.5 million).<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_%EC%A3%BC%EC%9A%94_%EC%A2%85%EB%A5%98\"><\/span>2. main types<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Bid money loan (balance loan)<\/strong><\/li>\n\n\n\n<li><strong>Renovation and remodeling loan (additional operating funds)<\/strong>\n<ul class=\"wp-block-list\">\n<li>The winning bid is vacant or has squatters <strong>Brightness Cost<\/strong> Required.<\/li>\n\n\n\n<li>If your building is in poor condition, you'll also need funds for repairs and remodeling.<\/li>\n\n\n\n<li>Some financial institutions offer them as a package.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Post-lending (meridian funding)<\/strong>\n<ul class=\"wp-block-list\">\n<li>After you've already paid the balance on your own and taken ownership, <strong>How to get a second mortgage<\/strong>.<\/li>\n\n\n\n<li>Interest rates may be lower than balance loans.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_%EB%8C%80%EC%B6%9C_%EC%A2%85%EB%A5%98%EB%B3%84_%ED%8A%B9%EC%A7%95\"><\/span>3. Features of each loan type<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_%EA%B2%BD%EB%9D%BD%EC%9E%94%EA%B8%88%EB%8C%80%EC%B6%9C_%EC%A6%89%EC%8B%9C_%EC%9E%94%EA%B8%88%EB%8C%80%EC%B6%9C\"><\/span>(1) <strong>Cash Advance (Instant Balance Loan)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Target<\/strong>: A person who has won a court bid and is about to pay the balance.<\/li>\n\n\n\n<li><strong>Features<\/strong>: The lender gets some collateral security because the auction deposit has already been paid.<\/li>\n\n\n\n<li><strong>Conditions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>LTV: 40 to 701 TP3T (depending on property type\/location\/credit rating).<\/li>\n\n\n\n<li>Interest rates: typically 5-91 TP3T (lower for banks, higher for capital\/savings banks).<\/li>\n\n\n\n<li>Term: 1-35 years (long-term for homes, short-term for commercial\/land).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Required documents<\/strong>Bid acceptance decision letter, bill of sale, ID, proof of income, bid deposit receipt.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_%EC%82%AC%ED%9B%84%EB%8C%80%EC%B6%9C_%EC%86%8C%EC%9C%A0%EA%B6%8C_%EC%B7%A8%EB%93%9D_%ED%9B%84\"><\/span>(2) <strong>Post-loan (after ownership is acquired)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Target<\/strong>: pay the balance out of your own pocket and need additional funds after the ownership transfer is complete.<\/li>\n\n\n\n<li><strong>Features<\/strong>: Treated like a normal plinth, but evaluated based on the winning bid.<\/li>\n\n\n\n<li><strong>Conditions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>LTV: 60 to 801 TP3T available (bank-insurer oriented).<\/li>\n\n\n\n<li>Rates: 4-7% range (closer to the prime rate).<\/li>\n\n\n\n<li>Pros: Low interest rates, long term.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Utilization<\/strong>: Temporary financing of auction funds (debentures, etc.) \u2192 post-auction loans.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_%EB%B8%8C%EB%A6%AC%EC%A7%80%EB%A1%A0_Bridge_Loan_%EB%8B%A8%EA%B8%B0_%EC%9E%90%EA%B8%88\"><\/span>(3) <strong>Bridge Loan (short-term funding)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Target<\/strong>If you need to pay for brightness, remodeling, or clearance in a hurry.<\/li>\n\n\n\n<li><strong>Features<\/strong>: Short-term high interest rates (often over 10% per annum).<\/li>\n\n\n\n<li><strong>Duration<\/strong>: 3 months to 1 year.<\/li>\n\n\n\n<li><strong>Utilization<\/strong>: Charter\/rental matching after clearing, and replacement as normal.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_PF%C2%B7%EC%82%AC%EC%97%85%EC%9E%90_%EA%B2%BD%EB%A7%A4%EB%8C%80%EC%B6%9C_%EB%B2%95%EC%9D%B8%C2%B7%EC%83%81%EA%B0%80%ED%86%A0%EC%A7%80\"><\/span>(4) <strong>PF - Business Auction Loan (Entity - Storefront\/Land)<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Target<\/strong>Bidders on commercial real estate such as storefronts, buildings, land, etc.<\/li>\n\n\n\n<li><strong>Conditions<\/strong>:\n<ul class=\"wp-block-list\">\n<li>In loan underwriting <strong>Lease Yield - Development Value<\/strong> Evaluation.<\/li>\n\n\n\n<li>LTV 40 to 60%.<\/li>\n\n\n\n<li>Interest rates: 6-12% (higher for private financing).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Utilization<\/strong>: land auction leads to construction loan \u2192 development type investment.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_%EB%8C%80%EC%B6%9C_%EC%A1%B0%EA%B1%B4\"><\/span>4. loan terms<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Collateral Valuation Criteria<\/strong>: Based on the lower of the auction appraisal, the winning bid, and the market price.<\/li>\n\n\n\n<li><strong>LTV<\/strong>Lower than a conventional mortgage (40 to 701 TP3T levels, depending on the institution).<\/li>\n\n\n\n<li><strong>Interest rates<\/strong>: Depends on creditworthiness, condition, and use, usually between 5 and 91 TP3T.<\/li>\n\n\n\n<li><strong>Loan Term<\/strong>: Ranging from 1-year short-term (in the form of a bridge loan) to 30-year long-term (for homes).<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_%EC%A0%88%EC%B0%A8\"><\/span>5. procedure<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Winning the auction \u2192 Deciding on the sale permit \u2192 Paying the deposit<\/li>\n\n\n\n<li>Court notice of balance due date<\/li>\n\n\n\n<li>Apply to be considered for a financial institution (or private lender) loan\n<ul class=\"wp-block-list\">\n<li>Submitting the winning bid, the winning bid, the bill of sale, payment history, and credit documents<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Execute balance loan \u2192 Pay to court<\/li>\n\n\n\n<li>Transferring ownership + placing a lien<\/li>\n<\/ol>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_%EC%9C%84%ED%97%98%EC%9A%94%EC%86%8C_%EB%8C%80%EC%B6%9C_%EA%B1%B0%EC%A0%88%ED%95%9C%EB%8F%84_%EC%B6%95%EC%86%8C_%EC%82%AC%EC%9C%A0\"><\/span>6. risk factors (reasons for loan decline\/limit reduction)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>ViolationsConstruction<\/strong>\n<ul class=\"wp-block-list\">\n<li>Illegal expansion, use violation \u2192 no loan or greatly reduced limit.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Senior rights exist<\/strong>\n<ul class=\"wp-block-list\">\n<li>Liens, statutory liens, senior tenants \u2192 risk hedging by banks.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Brightness issues<\/strong>\n<ul class=\"wp-block-list\">\n<li>Squatter-tenant eviction issues \u2192 Shunned by financial institutions.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Winning bidder creditworthiness<\/strong>\n<ul class=\"wp-block-list\">\n<li>Banks won't lend to you if you have a low personal credit rating \u2192 you have to go to capital and savings banks, P2P.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Object Types<\/strong>\n<ul class=\"wp-block-list\">\n<li>Commercial properties, office buildings, and land are valued lower than homes.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"7_%EC%9C%A0%EC%9D%98%EC%82%AC%ED%95%AD\"><\/span>7. Notes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>ViolationsConstruction<\/strong>: High likelihood of loan denial. Illegal expansion, illegal change of use, etc.<\/li>\n\n\n\n<li><strong>Tenant-Reputation Risk<\/strong>Having an occupant is a loan underwriting disadvantage (requires a clearance lawsuit).<\/li>\n\n\n\n<li><strong>Rights relationships<\/strong>: Unable to borrow or significantly reduced limits if there are senior liens, liens, statutory liens, etc.<\/li>\n\n\n\n<li><strong>Liquidity risk<\/strong>: Auction loans have higher interest rates and stricter terms than regular mortgages \u2192 Funding plan required.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"8_%EC%8B%A4%EC%A0%9C_%EC%98%88%EC%8B%9C_%EC%8B%9C%EB%AE%AC%EB%A0%88%EC%9D%B4%EC%85%98\"><\/span>8. Simulate a real-world example<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Situation<\/strong>: Appraised value 500 million \/ market price 4.5 million \/ bid price 3.5 million apartments<\/li>\n\n\n\n<li><strong>Conditions<\/strong>: Apply bank LTV 70% \u2192 3.5 billion \u00d7 70% = 70% <strong>245 million available for lending<\/strong><\/li>\n\n\n\n<li><strong>Pay the balance<\/strong>: 35 million deposit paid, 315 million balance \u2192 245 million loan + 70 million equity required.<\/li>\n\n\n\n<li><strong>Post-loan conversion<\/strong>: Bank post-lending execution after closing \u2192 up to 280 million.<\/li>\n\n\n\n<li><strong>Investor strategy<\/strong>: If we hit 300 million chartered after Mingdo \u2192 Almost recovered equity + loan repayment structure.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"9_%ED%99%9C%EC%9A%A9_%EC%A0%84%EB%9E%B5\"><\/span>9. Utilization strategy<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Real users<\/strong>\n<ul class=\"wp-block-list\">\n<li>Buying your own home: Meridian balance loan \u2192 Long-term mortgage.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Investors<\/strong>\n<ul class=\"wp-block-list\">\n<li>Market arbitrage: low bid \u2192 remodel \u2192 sell.<\/li>\n\n\n\n<li>Charter leverage: Minimize equity by matching bids to charters.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Entity-Business<\/strong>\n<ul class=\"wp-block-list\">\n<li>After winning the auction for a profitable building, connect PF \u2192 Run a rental business.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Investors<\/strong>: Bid below market value, remodel \u2192 convert to rental\/sale \u2192 pay off loan.<\/li>\n\n\n\n<li><strong>Real users<\/strong>: Use a balance loan to buy your own home if you don't have enough money.<\/li>\n\n\n\n<li><strong>Legal entities<\/strong>: Proceed with rental business after winning auction for profitable real estate \u2192 Loan in the name of the corporation.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"10_%EC%9A%94%EC%95%BD\"><\/span>10. summarize<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Auction loans are more demanding and have higher interest rates than regular mortgages.<\/strong><\/li>\n\n\n\n<li><strong>LTV ranges from 40 to 701 TP3T<\/strong> \u2192 Equity capitalization required.<\/li>\n\n\n\n<li><strong>Violations - Architectural - Rights-of-Way - Clarity Issues<\/strong>must be pre-reviewed.<\/li>\n\n\n\n<li><strong>Investors can switch from balance loan \u2192 clarity\/remodel \u2192 post-loan<\/strong> Strategize a lot.<\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 The winning bid is lower than the market price <strong>Ensure a margin of safety<\/strong>which is why investors utilize it. However, <strong>Rights Analysis - Clarity - Violating Structure<\/strong>to be safe.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-image\"><img fetchpriority=\"high\" decoding=\"async\" width=\"970\" height=\"90\" src=\"https:\/\/wi-th.com\/wp-content\/uploads\/2025\/08\/in-te-ri-or_logo_1.png\" alt=\"Auction Loans \u24d2 wi-th.com\" class=\"wp-image-2906\" srcset=\"\/\/wi-th.com\/wp-content\/uploads\/2025\/08\/in-te-ri-or_logo_1.png 970w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/in-te-ri-or_logo_1-600x56.png 600w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/in-te-ri-or_logo_1-300x28.png 300w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/in-te-ri-or_logo_1-768x71.png 768w\" sizes=\"(max-width: 970px) 100vw, 970px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">All things interior \u24d2 <a href=\"http:\/\/dknock.in-te-ri-or.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">In-The-Rear.com<\/a><\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" width=\"970\" height=\"90\" src=\"https:\/\/wi-th.com\/wp-content\/uploads\/2025\/08\/dknock_banner_1.png\" alt=\"\u24d2 dknock.in-te-ri-or.com\" class=\"wp-image-2924\" srcset=\"\/\/wi-th.com\/wp-content\/uploads\/2025\/08\/dknock_banner_1.png 970w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/dknock_banner_1-600x56.png 600w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/dknock_banner_1-300x28.png 300w, \/\/wi-th.com\/wp-content\/uploads\/2025\/08\/dknock_banner_1-768x71.png 768w\" sizes=\"(max-width: 970px) 100vw, 970px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">Interior specialists \u24d2&nbsp;<a href=\"http:\/\/dknock.in-te-ri-or.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">dknock<\/a><\/p>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\">\u0392\u00a0<a href=\"https:\/\/wi-th.com\/en\/\">Weed<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>","protected":false},"excerpt":{"rendered":"<p>\uac74\ucd95\ubb3c \uacbd\ub9e4\ub300\ucd9c\uc774\ub780? 1. \uacbd\ub9e4\ub300\ucd9c\uc758 \uae30\ubcf8 \uad6c\uc870 2. \uc8fc\uc694 \uc885\ub958 3. \ub300\ucd9c \uc885\ub958\ubcc4 \ud2b9\uc9d5 (1) \uacbd\ub77d\uc794\uae08\ub300\ucd9c (\uc989\uc2dc \uc794\uae08\ub300\ucd9c) (2) \uc0ac\ud6c4\ub300\ucd9c (\uc18c\uc720\uad8c \ucde8\ub4dd \ud6c4) (3) \ube0c\ub9ac\uc9c0\ub860 (Bridge Loan, \ub2e8\uae30 \uc790\uae08) (4) PF\u00b7\uc0ac\uc5c5\uc790 \uacbd\ub9e4\ub300\ucd9c (\ubc95\uc778\u00b7\uc0c1\uac00\/\ud1a0\uc9c0) 4. \ub300\ucd9c \uc870\uac74 5. \uc808\ucc28 6. \uc704\ud5d8\uc694\uc18c (\ub300\ucd9c \uac70\uc808\/\ud55c\ub3c4 \ucd95\uc18c \uc0ac\uc720) 7. \uc720\uc758\uc0ac\ud56d 8. \uc2e4\uc81c \uc608\uc2dc \uc2dc\ubbac\ub808\uc774\uc158 9. \ud65c\uc6a9 \uc804\ub7b5 10. \uc694\uc57d \u2705 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":3650,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[405,406],"tags":[468,467],"class_list":["post-2986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-405","category-406","tag-468","tag-467"],"_links":{"self":[{"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/posts\/2986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/comments?post=2986"}],"version-history":[{"count":0,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/posts\/2986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/media\/3650"}],"wp:attachment":[{"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/media?parent=2986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/categories?post=2986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/wi-th.com\/en\/wp-json\/wp\/v2\/tags?post=2986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}