business notes with real estate - Posted by jenv

Posted by Michael Morrongiello on July 06, 2003 at 17:17:53:

If the buyer will go a long with this, as opposed to also wanting control and ownership of the Real Estate I don’t see anything wrong with this approach.

You would own the property (at a discounted acquistion cost) and then have a ready tennant in place.

However IF you find that the BUYER will not play under these circumstances, then a properly structure sale transaction where the seller finances the Real Property and also finances the business can result in the seller still obtaining cash from the sale of his/her Real estate secured “paper”. (we would have interest in such a 1st lien loan)

To your success,
Michael Morrongiello


business notes with real estate - Posted by jenv

Posted by jenv on July 06, 2003 at 02:18:50:

Consider the following:

A yet-to-be-consummated business purchase, with about 1/2 the value in real estate & 1/2 chattels. Seller wants more cash than buyer is currently offering, but is willing to carry some paper. Instead of giving the seller cash by purchasing his note, I’m considering proposing that I purchase the real estate at a discount and lease it to said buyer, with the remainder of cash & paper going to the seller. Is this a good/sane idea?