Selling an LLC that owns a single home & has an HML in place

[Neil Metzger]

Question about selling a business that is a single member LLC, has no debt other then a mortgage on a single home, and has secured a hard money loan via that same mortgage. The owner is dealing with personal issues and wants/needs to leave the country. Her company purchased a home in Oakmont PA for 105K, with 10K down. The as-is appraisal value of the home is 140K, per the appraisal. The ARV, on an already secured 65K renovation budget is 260K.

My role in this transaction has been assisting  the purchaser with the acquisition of the home, and then managing the renovation.  Project is just starting and going well. My company does consulting work that helps investors connect with and then manage properties in the Pittsburgh area, so full disclosure here is that I would love to find a way to get a new partner inserted to work this deal to completion. My company is currently doing the renovation work, and I would like to keep the project moving. 

My desire with this post is to determine the best way to advise my client to proceed; should she simply try to sell the property again? Or sell the company that owns the property? Or possibly get creative and add a member to the existing LLC that wanted to take over operations of the company? I am guessing there may be rules in the hard money loan that preclude simply selling the LLC that owns the loan, but I have been surprised in the past at what BP members come back with!