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Updated about 1 year ago on . Most recent reply
Selling LLC to allow commercial loan terms
Hello, if I sell an LLC holding real property to a homestead buyer, can I use commercial loan terms on this (business/holding company) sale? Specifically: skipping RLMO, having a balloon payment, and prepayment penalties.
Most Popular Reply
@Brian Kempler
I have to agree with @Kevin Sobilo here.
To your OP, as long as the buyer fully comprehends the deal, from all angels, and have no illusions of full benefits of home ownership, then there is no reason you cannot proceed. Since there is not lien/loan, then you can create any type of loan you want if the buyer agrees.
It still kinda sounds like the buyer may not be fully aware of the nuances of the deal. It's a business, so it's your choice how to run it. Wrapping am asset in an LLC, then selling the LLC is not uncommon. Selling the LLC that owns a property as a business type loan is totally fine since there is no real institution involved.