All Forum Posts by: Bill B.

Hello,

My Brother-In-Law's family may (only may) be able to 1031 exchange into a property that has a century old farm house on 33 acres of land.  It is a working citrus and avocado farm.  The house is located between LA and Santa Barbara and is an easy drive to either of those "destination" cities.  It is also very quiet and peaceful.

I have the creativity of a rock, but even I could write the marketing for a B&B located in the house. My Sister and Brother-In-Law are too old to try and run a B&B or assisted care facility.  Do providers of those services rent facilities?

I probably left out a LOT of information, but I don't know what I don't know.

Thanks to all for your time and effort.

Bill

Hi,

We own an agricultural parcel free and clear.  We are contemplating building on that farm.  This is NOT an investment to sell, it would be the primary residence for my wife, our son, and my elderly parents.  So, we intend to have two "masters" or a granny flat.

questions:

1.  What is the general process?

2.  Where can I find construction financing?

3. How does construction financing work?

4.  Does owning the land free and clear bring enough "skin in the game" or will we need substantial equity in the construction loan?  That is, will the construction lender limit the loan to XX% of total build costs?

5.  The land is NOT flat.  The topology is steep in spots, but not very steep in the preferred building site.  How much can that complicate things?

6.  How much will the topology add to building costs?

7.  We are not "gold plated faucet" kind of people.   That said, I'd like to include some things that would be considered "custom" in SoCal. 

8.  Is there a way to build out a portion of the home, like the garage, and move in to allow us save money?

9.  While I know there are a nearly infinite number of variables, is there a range of per square foot costs to build? (again, we're not stamped metal ceilings, gold faucet, built in fridge kind of people.  Glacier Bay/Price Pfister fixtures and GE appliances are more than OK with us.)  We want a solid structure with a comfortable interior.   

10.  What have I NOT asked that I should have asked? 

I'd be very grateful if SoCal builders would weigh in on this. 

@Karen Margrave and any others who I may not have yet encountered in the forums.

Thanks to all in advance for your time and effort.

Bill

@James Wise

Thank you!!

I passed on that note, thanks to BP and you too!

I appreciate your input very much!

@Mike Hartzog @Bill Gulley

As always, great input from you both!!

Thank you both for your time and effort!

Hi,

@Bill Gulley @Ellis San Jose @Mike Hartzog

Ellis, Bill, and Mike, do any of you have any insight into the powers of this State of Michigan second mortgage mentioned above?  It was in connection with Hardest Hit efforts for which the borrower qualified.

Is this second mortgage a "super lien" because the lien holder is the State of Michigan or have other "super powers"?  Can it be wiped out by FC?  

The "nature" of this second may influence my bid on the note or whether I close on it at all.

Here an example of troublesome language in the Mortgage:

"This Mortgage contains a Power of Sale and upon default may be foreclosed by advertisement as herein provided. Upon default being made in the payment of sums of money herein agreed to be paid, or in the performance of any of the covenants or agreements herein contained according to the terms hereof or of the Mortgage Note secured hereby, the holder of the Mortgage Note is hereby authorized and empowered to sell the Property or cause it to be sold and to convey the same to the purchaser in any lawful manner, including but not limited to that provided in Chapter 32 of the Revised Judicature Act (MCL 600.3201, et seq) entitled "Foreclosure of Mortgage by Advertisement" , which permits the mortgage holder to sell the Property without affording the Mortgagor a hearing, or giving the Mortgagor personal notice; the only notice required is to publish notice in a newspaper of general circulation in the county in which the Property is located and to post a copy of the notice on the Property."

i.e. no recorded docs that would show on an O&E until after a subsequent sale by the State of Michigan.   

Is that how you'd read this?

Should I be as frightened by this as I am?

Hi,

I'm in DD on a note in Michigan.  There is a second mortgage on the O&E held by the Michigan Homeowner Assistance NonProfit Housing Corporation Acting Through Michigan State Housing Development Authority

(Whew!!! what a pithy name.........GREAT for marketing.....)

This is a Future Advance Mortgage. Question 1: What is a "Future Advance Mortgage"?

The verbiage in this second mortgage makes it sound like it remains a lien on the property no matter what happens.  (And governments can make that happen......)

Has anyone dealt with a second mortgage like this in a NPN?

I appreciate everyone's time and effort. 

Thanks!!!

Bill

@Karen Margrave

I am so sorry to hear of your loss.

Deepest sympathies to you and your entire family.

I will keep your husband, you, and your family in my prayers.

@Karen Margrave 

Hello,

May I ask how this ended up?  Where are you in the process now? 

Thanks for your time and effort.

Bill

@Collette Douglas

Hello, 

May I ask how this turned out for you?  I have a family member in a similar position. 

Thanks for your time and effort.

Bill

@Brandon Turner

What happened with this property?