Seller Wants Monthly income Until 65

[Harith Naga]

I am looking to purchase a property in Texas. The seller wanted to sell it about 1 1/2 ago. But now has decided that he wants the monthly income it brings him until he reaches the age of 65. I have heard about some buyers sending monthly checks to the seller. How does that work? 

Does that mean that I have two options if I wanted to send him monthly checks:

1.  the seller is financing the deal? 

2. I just pay cash, sending him monthly checks, and then at some point, paying a lump sum payment? 

thx