By showing on paper what they can gain in income and possibly reduce the tax liability all typically done a year after the closing versus over the life of the loan. 

This loss on paper, will offset against your active income on the 1040.

In my county it is pretty easy to file a small claims action (and cheap - about $100 for paperwork and papers served).

You'll want to ensure you keep title clear and not mess up anything in the transfer which is why I asked if a deed of trust was officially recorded in the County so you will want to have a paper trail, even though the property will still be collateral for the loan.

At some point the peak will be reached and many will be stuck with things that will crush them.... which I know all to well about.

The best way to get the Owner provide financing by showing the pluses of the Owner Financing on paper. 

@Demjan Van Der Kach Is your primary goal to cash out or to hold paper?

Here's my opinion:I'd start with getting a deal structure on paper:1) Agree upfront how much value you assign to his land, and agree that your shared LLC/trust (or whatever you set up) will owe him that amount when you ultimately sell.

The only thing I hate more than generic clutter, is paper clutter... so I became a landlord, since that obviously meant I wouldn’t have to deal with paper. 

I had some roaches in the room located behind my garage (it's full of boxes and roaches eat paper/boxes.