Buying on seller finance, selling on land contract: how to secure

[Sean Dezoysa]

Let's assume this scenario:

A-B sale. Seller sells a house for 10k down, 190k note secured by deed of trust in first position

B-C sale. Investor resells house on a land contract, 15k down, 200k note secured by deed of trust in 2nd position.

If the above house ARV is 210k this seems to be a problem: liens of almost twice the home value encumber the house and block a sale or refinance.

So if the above structure is not valid, and a 2nd note can not be attached as a 2nd deed of trust, can someone educate me on how the investor's position should be secured?