With rates where they are right now, Once the loan gets higher than about 250k, the property stops cash flowing. 

Loan is 4.25%200,000 left on mortgageValue 400 conservativelyrefinanced in 2019 so about 5 years in. 

All this does is report their payments to the credit bureaus like how your credit cards or car loan company reports payments to the bureaus.  

There are some HOA's that are in such bad shape they wont allow any type of loans and it must be a cash purchase.

They've even called my mom who we don't live with anymore (but lived with at the time we applied for the loan).

Given that I'm a new investor the loan/mortgage are in my name.

He pays seller's note ("outside" loan), and then the seller turns around and pays his loan ("inside" loan).

Lastly, if you need help with a loan or want to talk, shoot me a DM or email!

Some lenders do a periodic search of ownership records of all properties in their loan portfolio.  

Quick question on those who have done seller financing:- Buying a 0.3 acre downtown fort lauderdale multi family, negotiated an around 1M price w lot of development rights, double lot. seller got it way back early 90s for pennies- got good credit 800+, w2 job etc put 40% down and mortgage bank offered 6.62% 30yr fixed (CF negative as this would make current rent roll not too much compared to the PITI)- property is in ok condition, needs 20-30k repairs which seller OKd, and all 3 tenants are month to month, pay bit under market but also ok- seller would like to do seller financing, interest only at 5.75%, 30yr amortization at 7yr balloon (CF would be positive) - id be paying some principal as well, just to grow some equity- buying this deal for the future development of the area (las olas, kushner broward crossing) so not really worried even if we overpay for it now, but never done creative finance as i always relied on a strong W2 job to get good loans but obv im used to 3% 30yr rates from covid times not this 6+ environment..Goal is to hold the property 3-5yrs, and then actually develop it or sell half the land / refinance, pull out HELOC if it appreciates.Questions:1) What does he know that i dont?