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Check roadfly.com. There is a good E32 (740) forum there. I'm fairly familiar with these as I looked pretty hard for one , unsuccessfully.
As has been mentioned, from '93-early '96 the blocks had a problem. BMW had a campain to replace if they failed an idle and leak down test. Problem was, early replacements were replaced with the same crappy blocks.
There is a site, it's a 540 site that goes into great detail and gives the serial number for the Alusil (good) block. I used to know but I've forgetten.
The best advise is, don't consider buying one that hasn't had the block replaced with an Alusil one. Most people know about this problem and shy away, so resale could be a problem, even though all Nikaksil blocks don't go bad.
As far as the rest of the car, they are hard on front end parts, radiators go around 100K and valve cover gaskets are poorly designed and leak about every 50K or so. The iL has an air suspension that is expensive to repair so an i may be a better choise. By '93, most of the electrical gremlins were worked out. In some ways, A/C being one, they are more reliable and less expensive to maintain, especially if you are a good DIY.
Most people in the know will recomend a 5 series over a 7. They are a little simpler, have basically the same interior and ride almost as good as a 7. I have two 5's and like them a lot!
I'd suggest finding a really nice '91-'92 735i or as was suggested, step up to a '97. That's a big step since a nice '92 can be had for around $8-11K and a "97 will run more than twice that.
Good luck, check out the road fly forum.
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Mr. BILL
91 300E 120K
90 300SE 275K (sold)
92 BMW 525iM 120K
90 BMW 525iA 175K
85 300D 175K (sold)
84 300SD 245K (sold)
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