"@ Frank ChinIn this specific instance, it is undeniable that a house was built on that property more than 15 years ago simply based on Google Earth data, but you can see by the county assessor records that the house on the subject property was built in 1950 and then the property encroaching was built over the property line shortly thereafter, in 1951.@ Matt Devincenzo,From the info in your post, the land does not seem to have officially been taken by AP.

It's almost impossible to get deductible amount on some instances and owners are paying out of pocket.

The house has been featured in magazines and garden tours and is valued around $1.8M.

Typically when you see "cash only" the agent doesn't believe the property can pass a home inspection which isn't relevant for construction loans in most instances and there are plenty of banks, hard money lenders etc. who offer construction financing on distressed buildings.

For instance, for a $100,000 property, you’ll want to have $20,000 for the down payment, roughly $5,000 for closing costs, and maybe another $5,000 to $10,000 in reserves.

In this instance what I would do is get the deed in lieu from the borrower so you ahve the property again and get a note from them but have an attorney draft it to see if you can include a confession of judgment - meaning if they do not pay then you can get a quick judgment and possibly garnish wages.I would also have them put a small down payment as part of the note and only accept a check that way if you ever did garnish you have a copy of a check so you know where they bank.unfortunately you are right they can stop paying on the note and its unsecured so its a risk but out of all the options this is your best option.

However, there are instances where it may be beneficial to perform additional cost segregation studies.You could perform a second cost segregation study after you’ve made large improvements to the property.

Pros/Cons, contacts even maybe, for instance how do you even acquire a loan like this, or is it the same as hard money dealings.

For instance, using bank financing to buy in expensive places like California, Washington, New York or Illinois are really tough to cash flow.

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