Owner Financing - How to do it

[David Stott]

hi, a tenant has approached me asking if i'd be willing to sell to him. he is uncertain of his ability to get conventional financing, and has asked whether I'd be willing to carry back a 2nd mortgage that would amount to his downpayment. he's currently inquiring with lenders on his ability to structure a first mortgage. I have about $150k in equity in the property by my estimate, and therefore, would be willing to carry a mortgage in 2nd position for about 30-40k if the terms were favorable. anyone with experience in something similar who could provide me with guideance so that my interests are protected? thanks!