I have an income-producing multi-family property that I own cash. A local contractor wants to buy the property from me to develop a much larger (30-40 unit) property on it. He’s asked if I’m willing to carry the note if he puts 25-30% down.
Financially, I don’t have an issue carrying the note, but I’m hesitant since I’m not a bank. What type of lawyer should I reach out to draft the documents and consult?
My main concern is he has to pay me in full before pulling any demolition or building permits. Likely since I’m in the first position, a construction loan would require him to pay me off (so they can sit in first), but I’m not entirely sure of the mechanics.
Anything else I should be wary of?