Seller Carrying a Note as Buyers Down Payment for HML

[Manny Cirino]

I was going through a few case studies today and came across a strategy I have never heard before. Strategically it sounded great and theory and this was an authentic case study(personal success stories no guru BS).

The investor spoke about flipping a property using a HML, he explained how he had the funds for holding cost and intitals upfront points but not for the 30% down payment he was required to pay, instead he says he got the seller to agree to carry the note on his downpayment since it would be a short term.

The question I have regarding this is:

1. is this a common strategy used?

2. has anyone here used this strategy?

3. would most HML even agree to letting the seller holding second possition.

4. if possible what are things to look out for(calculations, interest, etc).

Any input and insight would be appreciated.