They fell behind and the 1st lien LENDER filed for NOD and NTS - Notice of Trustee sale and it went to the TRUSTEE SALE X-XX-2023 where the property was SOLD to a Third Party BIDDER for $375,000I assume under this SCENARIO - the 3rd PARTY bidder who purchased the property at the Trustee Sale Auction 8-23-2023 was buying the property involving the action being BROUGHT to the TRUSTEE SALE AUCTION  by the 1st lien DOT lender and that the SUBORDINATE $101,500 2nd lien Held by HUD may have received any (some) OVER BID funds but utilmately was WIPED OUT at the Trustee sale Auction...Thus their 2nd lien Goes away...Do not believe that the SUBORDINATE DOT lien to HUD survives the Trustee Sale unless they BID to protect their juinor lien interest.

Your construction loan would wipe out any liens that you have on the property when you get that product.  

In most cases, the borrower would file BK and unsecured creditors would largely be wiped out or take a serious haircut.

If the lender foreclosures wouldn’t it wipe out their lien?

That profit margin is so small and could easily be wiped out with holding costs. 

My son is going to FSU, my wife will be making frequent visits there because he is her baby ;-). 

It's the perfect storm of low end houses (they look nice, but they are all builder grade stuff where they are throwing these homes up by the thousands every year), high occupancy with most stays having a high percentage of young wild children, and tired parents after a long day in the parks that are too wiped to police their kids properly.

In the case of the LLC, if you commingle funds, you essentially wipe out the asset protection of the LLC.

HIGHLY risky and rate of return on gap funds should be north of 20% given the risk.. just not something to start with.. chance of a wipe out is far to great especially starting out. 

I view Gulf Shores as higher risk/higher reward - appreciation potential is definitely higher, but risk is much higher to get wiped out as well;  basic costs (rehab, insurance, etc) will be much higher as well, but so will rental amounts.