Requesting Opinions: Seller Financing Opportunity

[Ashley Thompson]

Hello All!
My husband and I are still relatively new to the real estate family and game. We have been using creative financing options to this point in order to maximize opportunities and due to limited financial resources of our own.
We have what seems to be a great opportunity to buy a triplex in Salem, Ohio via seller financing; (my husband and I analyzed the numbers, taking into account cap ex, possible vacancy, management, etc. and it is a great opportunity numbers-wise.) My husband called me today, however, concerned because the seller's agent presented new qualifications today - on the day of closing! She said that the seller's attorney instructed him to only agree to seller financing if the land contract was in my husband's name, not his company's name. This makes me anxious because, as I understand it, the whole point of putting contracts in the company's name is to protect our family finances. 
Thoughts?? Do we scrap the deal? Or is it still worth going for?

[Tristam Griffith]

It is perfectly normal for the attorney to say that. It is unusual that the owner didn't check with the attorney before the day of closing!

I do seller financed transactions frequently. We don't allow them to go into an LLC unless the LLC owners agree to personally back the loan. Why? Because you (the buyer) form an LLC to protect your assets and limit liability. Why would a seller want to finance a property to an entity that gives them no recourse if they default.

Just tell them to re-write the agreement, and put you as a personal guarantor on the loan. Then you can put it in LLC to protect you against tenant lawsuits, and the seller's loan is protected because you are personally guaranteeing it.

One more tip. The insurance policy must also list the seller as a payee, just like a bank loan. Hope this helps!