Deal Structure - 5 People on Title and 3 Want to Sell
Good afternoon! I have an interesting deal that was referred to me yesterday. Here's the situation.
Subject property is a Duplex in Los Angeles, otherwise known as L.A. There are five families living in both units. Three of the parties on title want to sell their share and move on.
My proposed solution is: Create a promissory note so the two remaining parties are making payments to the three sellers for the remaining balance of their percentage of ownership Market Value divided by 5 x 3 (Appraisal TBD). I would get paid for structuring this transaction out of the down payment. The buyers and sellers would then be using a loan servicing company to service the loan for the remaining parties. We can amortize the payments however it's decided - over 15-30 years, with an agreed on % rate and make it due in 5-10 years as an example.
This may not be the ideal way to structure this deal so I bring here, to the BP forums for microscopic scrutiny.
Thanks in advance for your time.
David