Creative/Seller Finance Questions

[Julien Anaya]

Hello,

I purchased a property in California using hard money with a 6 month term that I intended to flip for $220,000. I ended up just relisting the property on MLS and accepted an offer at $305,000.

I know that the buyer has the 20% down and even a little more, however, the lender is saying they may not lend to her (still waiting for an answer as to why they may not).

Her closing costs with this lender would be $14k

How can I restructure it on my end so if anything goes wrong, I can salvage the deal? Here is one idea I have...

1. Increase purchase price to +/- 325k.

2. Create a note at x% interest rate for the buyer and have her put down 20% paid directly to me.

3. Refinance out of my HM loan.*

4. Sell the note to another lender to pay off my loan from the refi.*

(Can I get away without doing a refi and sell the note within 6 months to pay off the HM?)

(* marks the areas I don't know are possible)

Her note to me would be 260k, and my loan is currently $187k.