Selling house and holding mortgage for LLC buyer

[Nancy Mills]

Hi, I am selling a property and willing to hold mortgage. The buyer is an LLC. Are there any potential pitfalls to selling to an LLC? Anything I should be aware of before doing the contract? Thank you!

[Ronald Isgate]

I am a PA Real Estate Attorney.  It really boils down to your confidence in the borrower.  Remember - you are now the bank.  You must evaluate the borrower to determine the likelihood that the loan will be repaid.  

As far as the LLC - I would strongly suggest you speak with an attorney that does private lending work regularly to ensure that the loan docs will be valid and enforceable. I would recommend you get a personal guarantee for the principal(s) of the LLC - that will be key in locking them into the loan.