selling orchard to llc

[orchard]

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.

 

[adjusterjack]

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.

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).

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.

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.

They will not sign a personnel guarantee.

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

Up to you.

 

[army judge]

What should my concern and hence hesitation be in selling to the llc.

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.