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selling orchard to llc

Discussion in 'Commercial Transactions & Investments' started by orchard, Dec 1, 2016.

  1. orchard

    orchard Law Topic Starter Guest

    Jurisdiction:
    California
    I have an offer from an llc to purchase some land to develop. While the price and interest are reasonable the down and 20 years pay off is a joke but is the best I've had. The llc is comprised of upstanding financially stable orchard owners. I'm concerned over it being an llc. If they don't pay I am first mortgage and can foreclose. What should my concern and hence hesitation be in selling to the llc. They will not sign a personnel guarantee.
     
  2. adjusterjack

    adjusterjack Super Moderator

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    Yet they can't get a loan from a lending institution? Trust me, you are not smarter than the bank that won't lend them the money to purchase your property. Any buyer who needs seller financing is a bad credit risk regardless of how "upstanding financially stable" they say they are. Any seller who agrees to seller financing is either desperate or a fool or a desperate fool (I learned that the hard way).

    Your biggest concern is likely your lack of knowledge of the foreclosure process. I suggest you read up on the two types of foreclosure available in CA and then hire a lawyer to draw up the contract to properly protect you.

    Foreclosure - foreclosure_housing_selfhelp

    Make sure you include the power of sale clause so you have a choice. Also include provisions that allow you to sell the note at any time. High interest notes that perform for a couple of years are attractive to investors and you might get 70% or so of the balance so think about that in your pricing and interest rate.

    Then you either do the deal their way or tell them to take a hike.

    Up to you.
     
    army judge likes this.
  3. army judge

    army judge Super Moderator

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    MY concern has been, and always will be, get the money before you close the deal.

    I'm not a bank.

    I don't carry paper.

    Well, with one exception, I do carry paper with pictures of DEAD PEOPLE on the paper, as in US PAPER CURRENCY.

    The only checks I take in big deals, are certified checks or cashiers checks.

    I have taken "bearer bonds".

    I am better off owning land, than carrying "funky, funny paper" for GRIFTERS, PRETENDERS, and PERPETRATORS!

    Do yourself a favor, sell the property ONLY if you get cash, a cashiers check, an ACH deposit, a certified check, or "bearer bonds".

    Financially responsible people don't ask sellers to carry paper.
     
    adjusterjack likes this.

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