Securing Private Funds for a Land Contract

[Paul Murphy]

Hello all. Currently I'm involved in a land contract with 11 single family homes and one duplex. The total purchase price is $720,000 which is $60k per property. The homes are rented out and located in Cleveland Heights, Ohio. I'm currently paying interest only for 5 years, then will be required to secure financing for the remaining balance. After putting a down payment on the principle, I talked to the seller and they would consider the contract fulfilled if they could get $500K cash now.
My question is, if I find a private money lender that would agree to buy them out and take over this deal, how would I secure the transaction so they wouldn't just walk away with the properties considering the equity in it would be equal to what they acquire it for? Paying a lower amount monthly would be ideal, but I just don't want to be left with nothing.
Thoughts?