"Selling" seller financing tax implications to owner

[Jay Chekansky]

Hey BP - 

Last weeks podcast (published 6/13/2019) sparked some thought from my side when the guest broke down some of the tax implications and scenarios that he uses to "sell" sellers on seller financing.  I have gone back and listed to that section a few times, but I still don't have a fine enough grasp on the content to "own it" when speaking to a seller.

Does anyone here have a firm enough grasp to break down and explain to the group the line items he mentioned, ordinary vs capital gains calculations, and so on?

Sell for lump sum/cash out - Seller is taxed at LT cap gains rate based on price/ property basis(?)

Sell w/ financing - Sellers principal payment received taxed at LT cap gains rate while interest income is taxed at ordinary income rate(?)

Thanks in advance for any help

Jay