Trying to keep it in the Family

[johnnymac46]

I am currently looking into buying a second property, its 150 acres in Kentucky. Its typical rolling hills, huge fields, massive trees. This property has been in my family since at least the 1860's as far as I know. As long as I can remember we have been having family gatherings, reunions, christmas' here. My grandfather recently passed away, and to save family disputes and other problems with splitting the property between 7 children it was decided to auction it off.

Here's where I'm clueless...

I own a home in Virginia, which I bought in 2008 with a VA loan. I understand how buying a house works. What I dont understand is how to buy a house that is up for auction? If I was to buy this would I need to have the money in the bank(pay cash)? or do I just need to get approved for and have money for a down payment? I dont personally know anyone who has bought a house/farm at auction. I can't contend if someone with an unlimited budget shows up and wants it. So I'm hoping for a little bit of luck to be on my side when auction time comes.

This is going to put a huge damper on the Camaro but it means more to me and my family, and seems like the right thing to do. I dont want to see the farm get bought up, split, resold and trashed.

As usual thanks for any advice or help with sorting this out I'm workin the Google machine to try to figure it out on my own as well.

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[CRCRFT78]

Beautiful property, I hope you can save it and keep it in the family.

[6D9 Matt]

I would think you would just need to get preapproved for a certain amount (loan) and then add on top of that whatever you have as a down payment. That would be your highest bid at the auction, bc obviously you dont want to bid for more than what you are approved for.

Beautiful property... what part of KY? I am originally from western KY, but live in TN now.

[johnnymac46]

Thanks for the help.

It's about 30-40 minutes east of Bowling Green

[Sieg]

Get to know the auction company and the auctioneer, technically you'll be playing by their rules. Tell them your story, I'm guessing they'd want to see you be the winning bidder and may offer any assistance they can.

Our family has a large farm and there will be a transition within the next ten years. Not knowing the players in your family, your Grandfather's decision may have been a very wise one. Money and self perceived entitlement can do evil things to people.

I very much respect your objective. Best of luck.

[tones2SS]

Beautiful property, I hope you can save it and keep it in the family.

I agree. Good luck John.

[johnnymac46]

Thanks for the help everyone I'll get in contact with the auctioneers and see what kind of magic I can work and of course go talk to the bank...it will be a great place to retire in 15 years when I'm out of the service

[dmcgill]

Hey John,

Were you able to talk to the auctioneers? How's it looking?

[Beegs]

Yup.....you have to work with whatever terms the auctioneer has in place. You will probably have to have X amount to register to bid, then you will probably have to come up with more cash ten to fifteen days after the auction and then close within whatever time they require. They are all different.

I always have a title company make sure title is clear BEFORE auction day, it's cheap and you would be amazed at what can come up. Also you can make a quick call and make sure taxes, water/sewer bills are current etc...

[martin176]

I hope it works out for you, good luck with it.
Martin

[ErikLS2]

This sort of thing can be hard on families but have you considered going to them and see what would be a fair price and avoid the auction all together?

Good luck with it, it's a beautiful piece of land for sure!

[Ummgawa]

That farm will produce enough Hay to pay any monthly loan you might get on it. Can you agree to have your family take some up front money and take monthly payments? It would give you time to work out financing, or is this a settlement of his personal estate by the Lawyers representing his estate?

[RECOVERY ROOM]

The land is great, It's worth more than a car any day. Hope it works out for you.

[johnnymac46]

So I've been busy with work and forgot I started this thread. Thanks for the advice and kinds words to everyone.

Nothing is owed on the property it belongs to my Grandfather who passed away a little over a month ago. It's being placed up for auction to avoid adding any difficulties. I have spoken to my aunts and uncles (7 children), and they have all decided auction was the best way to go. I'm trying to get my mother and Sisters in on it just to keep it around. It's been in the family for way to long to see it go.

[CRCRFT78]

Hey John, any updates about the property?

[johnnymac46]

The auction is in September... As of right now getting the money is my problem...

I'm 23, have 1 mortgage, and a truck payment, am an e-6 in the navy so to a bank I'm pretty much maxed out.

I could handle it financially, however managing a property that is 12 hours away with renters and leasing the land to farmers may be a stretch given my schedule

I'm still trying to find a way to to manage it, I may sell the truck and go with the paid off 03 silverado I've had for a while now to free some money up. And try to get my sisters to invest with me.

I've been looking into alternative ways to make money off the property( cellphone towers, renting land,renting the house, selling hay, selling the timber, offering storage) if anyone has any ideas feel free to chime in.
Thanks for all the help and kind words from everyone.