I currently live in New Britain, 06051, but prefer the other end of town closer to Central CT State University, 06053.

Here are a few avenues folks often explore in times like this:You are already on this path - Owner Financing: It's great that the seller is willing to finance a portion of the deal.

I would also purchase the property and not the LLC unless you are a seasoned investor with a good attorney.

Put aside if the owner of the home is a family member. 

@Jerry Tello I should have mentioned the laws and how they affect your returns vary tremendously from state to state, and sometimes county to county.

Summary;  95% of all pre forclosure owners refuse to even talk about selling inspite of the empending auction. 

Over the past 10 years, he and his late wife poured their hearts into building this home (with permits, of course).

Hard Money is a loan that is 100% based on the value of the collateral.

Eric,, I think why people go for the fund model is the idea that they are spreading their money into multiple notes being held by the company.. while in theory this is great but as you noted you don't really have any security compared to being the beneficiary of the debt instrument IE debt is in your name. 

We have two properties in SLC area and manage from out of state.