All Forum Posts by: David Miller

#1 will violate the due on sale clause and trigger an acceleration of the outstanding balance. #2 creates a second layer of ownership (via the trust) that is unnecessary if you are still using the LLC. Keep talking with lenders - try local community banks and credit unions. Do not stop until you find a lender who will work with you. Not every lender requires a LLC exists for 2 years prior. Just understand you and your partners will almost certainly have to sign personal guarantees for the loan.

Even if the plan is to assign the deal, getting your own attorney who represents your interests would still be my recommendation.

Putting nothing down is good for the buyer - if things go sideways they lose whatever value they gained via their sweat equity but not actual equity. It depends on the state but sometimes the only remedy for a default on a seller purchase money note is for the seller to foreclose and take back the property.

Also make sure the lease option is not treated as an installment sale or like a mortgage in the state where the property is located.

It is negotiable. A prudent seller will often require some down payment to ensure the buyer has some skin in the game.

Seller's attorney is advancing the seller's interests and (unless Georgia has guidelines allowing dual representation in residential transactions) would be conflicted from representing you as buyer. Use someone who represents you and your interests and make sure any title issues are resolved prior to or concomitant with closing.

Jeff - I grew up in Clemmons outside Winston-Salem. I work on multifamily transactions all over NC - if you are looking for something that is more than 4 units, let's connect. PM me. David

Try John Lansche with Gtaybill, Lansche & Vinzani - see http://glvlawfirm.com.

If the PMC actually did the work, they may have a right to file a mechanics lien but if they were only an agent for you, then they would likely need to bring an action for breach of your property management contract (i.e. perhaps on the basis that they advanced funds for the work for which they are entitled to reimbursement). It depends on New York's laws. Perhaps a NY licensed attorney on BP can provide assist.

Evan - I am from Clemmons right outside the Dash. I would be interested in discussing this with you. Syndication is going to involve jumping through a lot of legal and regulatory hoops. And convincing investors to fund your syndication on your first deal will be an uphill battle. In addition, on a deal this size it will likely be easier to just partner up with another investor.