Seller Financing when I'm not the Buyer

[Ashton Karp]

I have a seller who would like to sell their duplex in Tacoma. I estimate the market value to be 320k. The seller would like to net the most but also carry a note after at least 50k in taxable proceeds, in order to defer her capital gains. She seems to only trust me being the borrower in a seller financing situation. I have ran numbers and the property is only worth 220k to me (100k lower than estimated market value). This is because I would need to gut it and bring it to highest and best. If I were to purchase then I would fix and flip the property. The Deed of Trust for the seller financing would be a "reconveyance without satisfaction" once I sold the property, as I would like to keep the loan and the seller would like to delay realizing the gains. Theoretically, we can then attach the funds to a new property or a temporary escrow account through an already agreed upon "substitution of collateral."

My question is if it's possible for me to have a promissory note signed in order to carry a note even though I'm not the buyer while concurrently having the seller not have a realized gain for the amount we're financing. This would then net the seller the most (320k market value) and give her the passive income/deferred gains as well as giving me a low interest loan to work with.