All Forum Posts by: Karin Crompton

@Account Closed interpreted it correctly: once a judgment has been rendered in CT, the property belongs to the bank. There is no redemption period (the owner being foreclosed on already had his chance) and no way to buy the property directly from the landlord, who would be considered the previous owner. If you figure out how to work directly with the bank, let me know! I haven't been able to do so and have had to wait for the property to be listed w/an REO agent.

The angle I'm not sure about is what happens to the existing lease, if one exists. I'm not sure the bank would be obligated to abide by the existing lease the way most new owners would. Knowing how banks generally do whatever they'd like, the answer is probably no ... but that's a question for an attorney.

Welcome, @Kim Handelman

@Kim HandelmanYou've got the right idea, offering something in return. I don't consider myself mentor material (yet!), but you can find a ton of info reading articles/blogs here as well as listening to the podcasts. You might also consider joining CTREIA, which has a lot of networking opportunities.

Good luck!

Online searches to find properties: MLS, HUD, HomePath, Hubzu, Auction.com, Craigslist, fsbo, forsalebyowner. Not sure whether foreclosure.com produces anything. I personally never liked it.

Online searches to dig deeper into info on a specific property: visionappraisal.com and/or the town's own website, plus MLS.

However, the most effective method overall appears to be marketing for off-market properties via direct mail, not searching online with the rest of the masses. Then, head to the town hall for the most accurate info once a property is chosen for further due diligence.

Welcome, @Sean LeBlanc! We own a vacation rental in North Conway and love NH. Do you do HELOCs on 2nd homes? If so, message me b/c I'd like to pick your brain. :)

Sounds like you have a great foundation. Best of luck!

I'd say there's no harm in placing a bid. Just stick w/your number and don't get caught up in the competitiveness of an auction (answer: Yes, of course they will try to play you against each other! That's why it's on auction.com.) - and if they choose your bid, great.

Good luck!

Thank you, @Bill Gulley I have a call in to a local bank today, will see what they tell me. They confirmed that a HELOC would not be the way to go (damn!), but I'm awaiting a call back on the other options. I'm still trying to think creatively as well. But it's all new to me and hurts my head a little bit. :)

Hmmm. Come on, guys, I thought I had the perfect plan! Are you telling me it's not so perfect anymore? ;-)

@Jean Norton

@Jean Norton@Bill Gulley I hear what you're saying as far as a HELOC being a consumer product, not for a commercial property. However, I'm not sure I follow as far as the Trust is concerned ... I'm not talking about an estate planning kind of thing, the Trust is being used for purposes of investment. Unless that's what you were saying? That the bank won't go for it - "it" being the HELOC idea - when used for commercial purposes and an investment entity rather than a family estate planning type of scenario.

Equity loans made to commercial entities - can you throw out a few products that would potentially be applicable?

Thanks again!

Hey all - this is a bit of a follow-up to a question I posted earlier (http://www.biggerpockets.com/forums/49/topics/120948-finance-101-how-do-i-buy-this).

I'm looking to purchase a vacation rental property that currently belongs to 3 families together (mine, my parents and my sister's).

Here's my latest thought:

The subject property is owned by a Land Trust and is free and clear. My mother is the Trustee. So the boiled-down version of the question is: can the Land Trust get a HELOC on the property? Would they require my mother, as Trustee, to be a guarantor? Is there any possible way to have the Land Trust itself take out the HELOC, and not my mother?

The property has been used as a vacation rental for about 4 1/2 years and cash flows, so I have paperwork I can show the bank that I think would demonstrate "seasoning."

On another note, Mom took out a HELOC on her primary residence in order to help purchase the vacation rental. So my idea is, I find a way to essentially move that HELOC over to the vacation rental and free up the equity in her primary residence (also, she'd simply like it to be paid off). Does this thought make sense? Ultimately, I'm attempting to be the owner of the vacation rental and buy out the other partners. Mom might still be involved in the new loan, but if I can do it another way, I'd love to.

Thanks for any input!

Ditto what @Jon Holdman said. You cannot buy a family member's or friend's property in a short sale, which is a legality set up to guard against fraud.

Now if you meant instead that your parents have a contract on a short sale property that you'd like to take over/buy from them, that could be a different animal ... though I still don't think you'd be allowed to do it.

And loans from private lenders are typically much shorter terms, nowhere near 30 years. I believe 1-2 is the norm, though someone else can correct me if I'm wrong. (You might purchase a buy-and-hold using private money, but then you'd refi into a traditional loan.)

Another thing I thought of - we rented a house on the Cape last year with friends and I seem to recall that lease being a bit long-ish ... probably in the 5-6 page range. It was through a Realtor. Maybe that's a happy medium for you? I'm just thinking there's probably a lot to a yearly lease that wouldn't apply to a short-term stay.