Structuring a deal - What are my options?

[Philip L.]

Yesterday I agreed to purchase a house in Michigan sale price is $110,000

The seller is asking that I pay $40,000 upfront to eliminate the current mortgage then the remainder $70,000 on seller finance for four years 
can be longer as the seller likes the idea of a regular income.

The seller doesn't want any connection to the house and ideally wants to be just a lender. We talked about what else could be used as collateral and I suggested my business but I am not sure how to structure the deal.

I currently have an LLC that has:
1 rental with $80,000 equity  
$26,000 cash in the bank
+ if we do this deal a property valued around $110,000 

I'm thinking that I could draft a promissory note from the business that states the agreed terms 
Or should it be the seller owns a % of the business until the $70,000 is paid in full

Would love to know everyone's opinion of the best way forward.

[Scott Wolf]

Originally posted by @Philip L.:

Yesterday I agreed to purchase a house in Michigan sale price is $110,000

The seller is asking that I pay $40,000 upfront to eliminate the current mortgage then the remainder $70,000 on seller finance for four years 
can be longer as the seller likes the idea of a regular income.

The seller doesn't want any connection to the house and ideally wants to be just a lender. We talked about what else could be used as collateral and I suggested my business but I am not sure how to structure the deal.

I currently have an LLC that has:
1 rental with $80,000 equity  
$26,000 cash in the bank
+ if we do this deal a property valued around $110,000 

I'm thinking that I could draft a promissory note from the business that states the agreed terms 
Or should it be the seller owns a % of the business until the $70,000 is paid in full

Would love to know everyone's opinion of the best way forward.

 If the seller is becoming the bank, the collateral should still be the house, and they should have first lien position on the home.  I wouldn't give them anything else as collateral, especially a completely separate business.