L/O vs. Seller carry back of 2nd mortgage - Posted by Brian (IN)

Posted by Brian (IN) on April 27, 1999 at 23:05:40:

I just signed a purchase agreement on a single family and am thinking of offering it for sale with 5% down and I will carry back a 2nd mortgage for 10% to 15% depending on buyers credit. I have flipped single families before using L/O’s.

Any comments from people more experienced about the advantages/disadvantages of each method.
What about:

  1. Risk
  2. Taxes
  3. Headaches
  4. Security on note for the 2nd mortgage
  5. My rights as 2nd mortgage holder if buyer fails to make my payments.