Do an appraisal, have the closing company/attorney draft a note and security instrument for the amount you will loan then you become the lender just like the bank.

Shortly after I was in a pretty complex discussion of financial instruments with an MBA on here and threw it out there -  "Oh, you must mean FU money." 

In the 2nd page of the offer, he says "Security Instruments:  2nd position Deed of Trust, Promissory Note, Named as addtional insured." 

Hi @Daniel Peavey - yes if I buy a note from you, I would ensure that you endorse the Note to me and sign an Assignment Agreement to transfer the security instrument to me (in TX this would be a Deed of Trust).

The resources and expertise through this site, podcast, and the meet ups have been instrumental in my husband and I creating our REI company and purchasing our first buy and hold rental this year!

You may want to execute a single strategy, but your market could be completely unsuited for what you think your initial strategy should be, and you'll need to pivot.

You as the investor cannot pledge a personal guarantee on any debt instrument under the umbrella of the IRA. 

@Keith Thompson  99% of the time the senior lender will redeem and not get wiped out but it does happen.what was rampant from 08 to 2012  was drop bids in PHX and Vegas.. owner did strategic foreclosure owed say 700k bank opens the bid at 400k.. they get a shill to bid and then buy it back for something far less than what they were owed.. and because the Feds put a restriction on 1099c  they did not have to deal with those.. today though you would have to deal with it and its ordinary income.there are a lot of angles when you learn the back end of these transactions and how the courthouse works and debt instruments work in each state.. my dads attorney way back when probably about 1969 told me Boy learn the court house that's where the money is made in RE. :)

To add to what @Caleb Heimsoth said, I think finding a really boots-on-ground contact in the state you choose will be instrumental too.

@Anthony Dooley  I think her question related to buying seller carry back debt instruments not her buying with seller financing.