Placing A Lein
i have a house i purchased from a guy who has a lot of property.We looked at another home he told us about and it looks like we might buy that one too.We are building a good realationship.He tells me that he had a 1.5 acre with a big building on it commercial land. He rented it out to the tenant for 5 years untill the tenant bought it from him a yr ago.the tenant is an indusrial cabnit maker, lots of employees,contracts with all the school districts in the city, makes good money he says. he has several notes from this cabnit maker that total 280,000 all range 2-5 yrs intrest only from a year ago. the notes range 20,000 to 50,000. the proplem is there unsecured perssonal notes. He wants to sell the notes , and is willing to dicount them 10%(i don't think that is low enough, and told him so) he siad he might go to 12%or 13%. I don't have any experience in this,mabye someone who does can give me some advice. I know a guy who somtimes buy's note siad he would not be interested because they are unsecured notes. This is my question if i aquire these notes can i place a lein on his bussines or the property to secure them? and if i can would not this be a basis for borrowing money to aquire the notes? I don't know how much the commicial land or bussines is worth but i would propably say more then 280,000 since it's in the heart of the city. any advice would be helpful thank you.
You have several things to think about. First of all you will have to allow the guy to default on the note. Then, and only then, are you allowed to do anything. You would have to sue him for the full ammount of the note and then a judge would have to enter a judgement. After a certain amount of time (as designated by state statute) you would have to go back to court and try to collect your debt. The court may order just about anything. Keep in mind that the property is likely not held in the guy's personal name. If it is in an LLC you should be aware of what a charging order is and if it is valid in your state.
I would run away from buying these unsecured notes. Even if they were secured by real estate, that discount is not sufficient to purchase them. GOOD LUCK