Post Closing Seller Carry Back

[Account Closed]

Hey guys, 

I have a deal just over a million that we are structuring pretty creatively. We are using a DSCR loan to finance 75% and bringing 25% to the closing table. The creative part is that our 25% is going to be kicked back to us after closing and the seller is financing that amount to us. We will bring the seller into our LLC as a 25% member (the only asset on this one will be that one piece of real estate) and use the LLC Operating Agreement to govern the terms similarly to a mortgage/promissory note. The seller will file a UCC-1 against the LLC to secure that interest in the event that anything ever happens to go south.

Has anyone done this before and have any insight? We are quite well-versed with creative financing but this is the first time we are utilizing this strategy (and currently lining up many others). Thanks!