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Underwriting an LLC buyer for seller financed property?
We’re selling a SF rental property and offering seller financing. We’ve bought, sold and created a handful of notes but they’ve always been to individuals.
Do you treat underwriting an LLC buyer differently than an individual? We've previously used Call the Underwriter to underwrite individuals, but my understanding is that compliance is less of a concern when selling to an LLC?
Are there any LLC-buyer specific potential pitfalls that we should be wary of?
We’ve had one group want to do the purchase within a trust; specifically put the property in the trust and then sell the trust. Any concerns with doing this rather than a straightforward sale and having them handle trust steps after the sale and without our participation?
We don't plan to sell the note, BUT we want to keep that exit open should the need arise. Anything unique about re-selling a note held by an LLC that we should take into account? Are they more/less desirable than a typical owner-occupied note?
Any recommendations on attorneys that would have experience in this that could advise and handle the transaction (in Birmingham, AL)
Thank you in advance for sharing your experience and wisdom.