How would you structure this?

[Michael R.]

Seller owes 24k. I agree to buy for 35k. What would be the safest way to finance this property without getting conventional financing? Owner is open to all forms of creative financing.
Thanks!

[Jon Holdman]

Good deal. I'd try to get a deed. Have your proposed doing a second with the seller? Or a wrap? Wrap the existing note with that payment going directly to the lender and the remainder going to the seller. Land contract would be second choice, lease option third.

How much is the payment on the first? If thats a 30 year mortgage, and its relatively new, the payment must be around $150 (plus taxes and insurance). If so you could offer the seller say $400 a month for 30 months. That's $12,000, more than the $11,000 they're asking for. You'll be just break even for that 2.5 years, but then in a very nice position after that.