Question on Note Structure

[Lindsay McLaughlin]

Hello BP community....I have a few properties I'm discussing with another investor to sell them to him with owner financing.  They are turn key rental properties, cash flowing.  I would allow the note to season and then be looking to sell the note down the road.  The terms of the note would be 8.5% interest, 30 year term, with 10% down payment.  However, he has other rental properties nationwide, and he is requesting the 10% down payment be put into another note for a short term...like a 3-5 year note at a high interest rate.  Would this benefit me?  Could I still sell my first note on the rental properties showing 10% down payment?  Would this decrease the value of this note?  Could I sell the note on just the down payment, and at what kind of a discount and would it be considered a 2nd lien on these properties against him?  I would love to make this deal work for him and I, but it certainly makes me nervous....any insight would be greatly appreciated.  I've been active in notes for over a year, but not in this situation and for some reason can't wrap my head around it to know for sure it would be a profitable sell.  Thanks!