Paying "0" dollars for a property?

[Sean H.]

I'm not sure how to approach this one. A friend decided to sell me his property. We agreed on a sale price of 100k.

I had offered at one point to pay him 5% if he wanted to play a silent investor on one of renovations. He said he didn't need the money immediately, and would just essentially "loan me" the 100k and let it start accruing interest for the next year or two. He said he didn't want payments, just to pay him back at the end of the agreed upon term.

So, my question. Is there a way to go through a closing attorney and change the deed over, but to not have the money actually exchanged?

I guess this wouldn't be far off from owner financing...

[Tim Herman]

@Sean H. This is owner financing with no dp and no payments. A title company or attorney will be able to write the promissory note. There will be some cash outlays. Have to record title transfer and mortgage and pay for title insurance and prorate taxes, etc. Get it in writing on a purchase and sale contract.