Doing this will indefinitely defer paying tax on profit or depreciation recapture. 

You can negotiate a flat fee, or percentage of their profit of any deal. 

The borrower gets the benefit of having access to capital fast and the lender gets the benefit of charging a higher interest rate and not having to pay taxes on the profit.

Here are some general guidelines: Lien Position1st Position LienEquityMinimum Down Payment of 20-25% (a 30% equity to sale price is preferred)Down Payment made in certified funds and not borrowedMaximum Funding of 70% ITV (Investment to Value)SeasoningMinimum of two monthly payments already made12 months or more preferredPayer CreditCredit Score of 650 or higherNo major derogatory trade lines (No 90-180+ days delinquent, foreclosure, repossession, bankruptcy, etc.)No decline in credit since purchase of businessTermsPrefer 60 months or lessMaximum of 72 monthsNo Balloon Payment preferredCash FlowBusiness has positive cash flow1.25 debt service coverage ratio preferred.DocumentationPersonal guarantee from a creditworthy individualStandard documents including Note, Security Agreement, and UCC-1 filing.Tax Returns on the business that substantiate profit and loss statements.OtherPayment history current and verifiablePayer Interview indicating buyer is satisfied with business and comfortable making paymentsMotivation for selling the note is not a result of a deteriorating businessConsideration of high risk businesses or geographic areasIn these situations, sometimes a partial is a better option. 

After high school, I pursued a career in the military, where I proudly served for seven years.

While these deals were successful, I realized that the cost of using hard money significantly ate into my profits.

Overall, it's been profitable. 

Initially, our plan was to fix the drywall leaks, clean out the property, and relist it for a small profit.

Finding an agent that knows the market and can find you properties that provide a profit (for both of you) is worth the effort.One more thing about the contract . . . be sure to read the ENTIRE document and ask for clarification is needed. 

@John Perkins Help you find lenders that can increase your profitability on your projects and perhaps help you scale!