Seller Financing question! We are the sellers.

[Linda Garcia]

My partners and I have a piece of land almost ready for permitting for a multifamily.  Our agent wants us to counter much higher take a chunk down and carry $4MM @ 10% until the construction loan or a deadline we define ( should be quick ) What are the risks vs a cash offer?  If they default wouldn't we get the land back? Do we first get proof that they will in fact get the construction loan?  

Thank you!

[Jay Hinrichs]

Quote from @V.G Jason:

Quote from @Jay Hinrichs:

Quote from @Chris Seveney:

Quote from @Linda Garcia:

My partners and I have a piece of land almost ready for permitting for a multifamily.  Our agent wants us to counter much higher take a chunk down and carry $4MM @ 10% until the construction loan or a deadline we define ( should be quick ) What are the risks vs a cash offer?  If they default wouldn't we get the land back? Do we first get proof that they will in fact get the construction loan?  

Thank you!

1. Yes you would get the property back if you are successful in the foreclosure. We were looking at buying a loan yesterday that was similar issue with a property and the buyer has filed a countersuit and its going to trial. So just recognize this could be lengthy process if they default.
If it was me, I would take it as a non-refundable deposit with a letter of intent and a purchase and sale agreement that the money is a down payment, is not refundable and they must execute the closing by a specific date otherwise they forfeit the money. I would include extensions in this offer but they would have fees attached to it.

that is how i would approach it.

lease option type of set up to with the down payment as a non refundable option payment.
sounds like a big enough project the buyer is probably substantial and real.. 

Even the real and substantial buyers are getting pressed. The last 30 days the big boy's tones have changed. Maybe I'm wrong but I can sense it in our negotiations in AZ. 

well i get it.. however if you do a lease option with non refundable option money up front and they fail to perform your done.. kepe the money and resell.. if this is the pac nor west things are still moving briskly for development ground..