if it goes TU it can take years to foreclose.. if you feel you need to help him just give him an unsecured prom note.. no defense to that if he does not pay and you get personal judgement quickly.. just check to make sure your not violating usury laws in your state..   

A lot of people immediately say I am calling a lawyer, but I would not suggest doing this, as it dIgs people Into a defensIve posItIon.

The legality of it is certainly important to know (that whole "ignorance of the law is no defense" thing) and I do know that many title companies - and even sellers (I'm one of them) - will not accept an assignable contract. 

Maybe i miss understand what you mean by this.Because this will put you in a more defensive position. 

How are you positioning your self defensively? 

The concept is called defensive investing. 

The main thing you want to do is an adequate level of due diligence to so you could have an Innocent Landowners defense if any environmental contamination was to show up in the future.

My guess is they will each be defensive and suggest the other should leave.

Using the refi as your normal business practice to purchase additional real estate is one of the defenses if it is called into question. 

If they get defensive there are ways to respond and defuse their defensiveness with the right language.I would look for opportunities that are actually marketing seller financing - there are some in the MLS or with commercial agents.