reply
by an investor
5yrs ago
from The University of Chicago
in Chicago, IL, USA
It's best to be direct with the seller and explain that a seller note essentially has the same rights as a trade vendor (read: zero in a worst case event). Be careful not to suggest that the seller will have any junior rights / position in the company's assets. The senior lender (and mezz lenders, if applicable) will expect the seller to execute a subordination agreement at closing prohibiting same.
reply
by an investor
2yrs ago
from The University of Michigan
in San Diego, CA, USA
We've seen 6-7% pretty consistently, with occasional pushback for a rate closer to 8-9%