Convertible Promissory Notes for Residential Real Estate?

[Stephen Bowman]

Is it possible to give a seller money to pay off $4000 in delinquent taxes in exchange for repayment of the loan in full (with 7% interest, 1 year term) + 15% equitable interest in the property? Also, with an agreement by both parties to begin the process of selling the property immediately? 

A seller has offered these terms to me (the lender/investor) and I'm wondering if anyone's ever done a transaction like this? Would I just need a promissory note and a deed of trust?