Posted by Bud Branstetter on May 29, 2000 at 16:23:02:
Angela,
I’m not sure what information you need. John has had some articles on the subject. Total details may be more that what I have time to explain. Basicly I am giving the seller the majority in cash. A portion will be payment only secured against a deed of trust that throws off a cash flow. No personal liability and the ability to substitute another note is also built into the contract. The seller has to have some level of motivation. The first approach is to determine if they will do any owner financing by carrying back a second if you can get them some amount of cash they need. From there it is not a stretch to secure it, or even assign, to a note you have taken back on another property. You have probably heard of the 5 and 10% seconds that aren’t saleable. Since they didn’t cost you cash(deferred profit) it can help the deal when they are hung up on price.