As such, the instrument should point out which steps need be taken to give notice of default and how the termination of the right of redemption is carried out, otherwise known as foreclosure.  

Borrower shall occupy, establish, and use the Property as Borrower's principal residence within 60 days after the execution of this Security Instrument and shall continue to occupy the Property as Borrower's principal residence for at least one year after the date of occupancy, unless Lender otherwise agrees in writing, which consent shall not be unreasonably withheld, or unless extenuating circumstances exist which are beyond Borrower's control.I'm not sure what they use in Texas, but I imagine your loan documents would have a similar clause.  

Additionally, if you are attempting to use a 3 year balloon to circumvent a borrower's potential right to redeem the instrument - that may not work.  

Unless they are all on month to month, in which case if the seller were to raise rents, and the tenants decide to move out instead, he would be facing $0 rent instead of market rent.What is your instrument to make the seller raise rent on their way out? 

The tax reporting alone will kill ya.I don't play with blanket debt instruments to finance anything, no matter how big I get.  

ACCEPTANCE: This instrument will become a binding contract when accepted by the Seller and signed by both Buyer and Seller.

After reading several books, and one (The Millionaire Real Estate Investor by Gary Keller) that has been instrumental in my thoughts,  I subscribe to what I now consider my #1 rule: you make your money when you buy.

IE represented the B ball player and us. had great reporte' with Wells.. who we cramed down.. we could not have done the deal without her help.fast forward.. we bought it for 1.7mil.. put 1.3 million in it.. and she sold it to a buyer she had in the wings for 5mil the day it hit the market.. . so for her she made 6 points on the 1.7 mil sale to us.. she was instrumental in working with our designer throughout the whole process.. and then we paid her 3 points to sell it to her buyer.. so on that one transaction she made about 550k.. in commissions. it was 12 months start to finish. 

The problem lies in brokers/intermediaries who try to put these instruments into a borrower's hands often by leasing them.

Evafla,Truly safe investments include bank CD's and US Treasury instruments.