A real estate deal hinges on lien position: the seller wants first position to secure an $8 million note they're carrying for 24 months, but the buyer's Letter of Intent doesn't mention second position at all. The speaker debated this with ChatGPT and is now verifying the details with Tommy and Catherine.
Are you in the deal room? Discussions with ChatGPT about liens in the first and second position. And it was so funny because I was arguing with it. I'm like, is this how you do it? This is how I think. And it's like, you are confused with this approach. Let me explain. It was funny. That's awesome. So who won the argument? You or chat? The chat. But now I understand because I literally wrote— I think it's right here. So this is the message that we got from Dallin basically explaining that— let's see— to maintain clarity, I want to reiterate the following based on your proposed LOI. And at no point in the LOI or the negotiations was a second position provision mentioned or agreed upon. Let's see, so entitlement awareness. The LOI clearly states the buyer's intent is to pursue annexation and rezoning. It was communicated from the outset that existing documentation provided a proof of concept, and that the rezoning process would need to be handled by the buyer starting at the beginning. Your stated strategy in the LOI is to position the property for development and secure an interim income-generating use, including truck parking, rather than beginning the immediate vertical construction. So relying on the terms of the signed LOI, the seller has already invested significant time and money with their attorney in drafting a formal purchase and sale agreement that reflects on these terms. The seller is willing to carry the $8 million note for the agreed 24-month period, but they must remain in first position to secure that interest. Then I discussed with ChatGPT in it. I actually sent an email to Tommy and Catherine and it says, after reviewing more closely, I realized that we're not actually— and let me know if this is accurate or not.
