[what Id like to know is this- what are the ways you can do creative seller financing to the flocks of people who cannot get a traditional mortgage? instead of renting out a property you own and pay a mortgage on, can you somehow write up a contract where you would collect a nice downpayment/ monthly mortgage from buyers while paying off your own mortgage? Im not talking about someone just taking over your payments because there is no upside for you... what im thinking about is a way to collect a mortgage from people who are otherwise not able to get it from the banks, therefore giving you positive cashflow, giving them a house, and giving the bank the money that you owe]
First I'd say there may be state restrictions. I know Arizona.
If you are an investor who has purchased wholesale, as an investment, and will sell retail you likely have a smaller mortgage than what your buyer will need. In Arizona it is legal to "wrap" a loan. If there is a due on sale clause you may have to pay up when they find out. Often, hard money lenders will allow wraps.
So, if you wrap your original loan and create a seller carry loan for the full amount of the loan you can negotiate interest rate and amortization..and throw in a couple of balloons if you want. If you have your seller carry serviced through a title company they will even send a portion of the buyer's payment to your original lien holder....(well, i had one case not work because the payoff for the original was too short a time period). You will have positive cash flow. From my experience folks who need to do a seller carry loan will pay closer to full price.