If your partner drafts a response to California or mentions to California that he will have representation to fight the letter - the state will give approximately 30-90 days  and put any liens in hold and not seize anything.What the state can and will levy will depend on the amount.I would have to assume that the state will try to levy something more liquid first before they do anything with the partnership interest.

I have found a seller that has multiple properties and is looking to liquidate, owner will offer great loan terms.

@Eugene BeardIm curious what is your exit strategiesI have invested the equilivant of the value of all my properties in income funds (mutual funds) so to liquidate I sell and  pay off the loans with monies received.

Where do you others put your liquid cash? 

So the problem to solve is to free up that HELOC liquidity.

If so, then from your perspective the transaction is treated as though the LLC distributed all of its assets to the members (including you) in liquidation according to the distribution provisions of the operating agreement, and then you purchased from the other members the assets that would have deemed to have been liquidated to them in this hypothetical liquidation scenario.Of course there are some complexities here (are there any built-in gains?

Your best bet is to show the broker your current liquidity and the purchase price range you are targeting.

Sufficient liquid assets to service the debt could be a denial reason.

I know I've met a lot of investors who are using them to basically liquidate their holdings here and look for other opportunities.

LOC's can be great ways to do the down payment on a property while keeping your 20k cash liquid to cover repairs etc.