While they cannot get a loan to an estate outside of California (and they must understand that when you send them there) they can learn who can get a loan and the mechanics of how it works. 

These mechanics are nowhere to be found in the Seller Financed arena.  

ok, I finally got to look at the SFH and it was a complete mess.. probably a 50K rip to the studs rebuild, mechanical, the whole 9 yards.  

Here's some verbiage from the draw request: "...10% holdback will not be released until all work is complete and it is determined that no mechanic's and materialmen's liens have been placed on the property."

I forget the numbers, but say $200 ARV, Free and Clear $25K labor and materials, JVed with Seller Performed work $25K with a mechanic's lien Had a JV agreement to buy 50% equity of house for $10 option and repairs performed Everybody happy when house sold.

water/landscaping/village liens, IRA liens, property taxes, mechanic (ie, contractor) liens to name a few.Make sure you don't buy a 2nd lien.

I would like to lay out a scenerio for a property that I am closing on in the next few weeks (hopefully, we have a final approval for SS) and hear what other buy and hold investors have to say.Backstory- My normal bread and butter property in this area is badly distressed, total rehab (all mechanicals and cosmetics).

I wouldn't mind buying this property for $40k, putting even $60k into it, then having it as a long term rental since all of the plumbing, roof, mechanicals, electric would be new- the ongoing maintenance costs would be lower than other properties priced similarly.

I couldn't see how it could be stopped.But John, I don't see a mechanism where a junior lien would reattach, only judgments and other non property specific liens.

New kitchen, flooring paint, some mechanical s etc..