This sounds like a pretty typical "private loan" from your family member to the builder.A key question is what happens if the building cannot repay the loan?

Does a HELOC have to be paid in full if the property used to secure the credit line is sold?

Hi Michaela,We were in a Ga REIA subgroup together many years ago....I remember your unique first name.

I always considered my primary security for repayment of the loan is the real estate that collateralizes the loan.

This is beautiful country out here and a unique real estate market with its challenges and advantages and I hope to help bring a little more investor attention to it through Bigger Pockets.

@Jon Klaus,I would be surprised if you get much of a response on this question.Laws are unique in every state, but in Colorado, it is against the law to fix commission rates - price fixing.In most cases, law or no law, commissions are negotiable and very much determined by the area. $1 Million listing in Aspen, Colorado or New York City are tiny listings.

Every state has unique laws.

I'd recommend reading through that guide that Paul recommended - and also listen to the BiggerPockets Podcast - cause every guest has such a unique story, you can really get a lot of different ideas on what you want to do.

A new rule in 2014 from the CFPB will deal with the concept of "Ability To Repay".

Not that I'm incredibly hopeful to get the back-due rent from the tenant in the first place, but from a legal standpoint, is this something the courts can require the tenant to repay as well?