Hi,If I buy a apartment doing a seller carry back, how do I explain to the seller how they are protected if they carry a 2nd position note subordinate to the bank?

@Nold R.In addition to the great post from Dave, possibly consider an option where the property is taken out of the LLC sooner rather than later and held as tenants-in-common prior to the sale, possibly setting you up in a position to take your share of the proceeds and individually purchase a replacement property via 1031 exchange. 

After 8 years as a director in the kitchen and bath retail space, I'm bringing my positive energy and relationship building to a wholesaling firm covering Los Angeles and San Diego counties (we specialize in single family homes priced between $400-$1.7M).

On the one hand, I can see it as a positive indicator, for example of market health and increasing suburbanization. 

For me it’s been one of the best ways to get positive cash flow- hands down.

Positive cash flow is desired but that is not my primary goal.

I have great credit, killer salary, and a bunch saved up but still can't afford a 20% down payment on anything over 600k. 

Is your income in a place that you could fund that for awhile until rents catch up and make it positive? 

If you did not and it’s unsecured debt you could be out of luck on some or all of the money as depending on his situation unsecured creditors in a bk may receive pennies on the dollar depending on what he can afford and if converted to a ch 7 you would get wiped out.Even in 2nd position he could argue the property is underwater and wipe out your lien.

With $40k saved, you’re in a strong position to consider options like house hacking, BRRRRs, or partnering with others to maximize your investment.