There is nothing new or creative about non-traditional financing or unconventional financing or sub-prime financing.No, I'm not really being picky, because there is such a thing as "creative financing" which is almost another unknown world to real estate investors or operators.Creative financing is the use of existing assets or newly acquired assets being leveraged or pledged for a debt arrangement.

That tenant will continue the same behavior regardless of the arrangement.

In CA a broker can arrange this for up to 10 investors, thus accommodating those investors that can't fund the entire loan amount or simply want to spread risk.

Sellers could sell house for more if they include a vehicle or furniture or some valuable w/ the house.Make sure client houses are staged so they sell faster & for more.

I'd really like to know if the IRS would flag anything about this arrangement.

If they get paid weekly or biweekly arrange to have rent paid that day.

How are these arrangements normally structured?

Sometimes a good time to get involved, because the owners are past the denial stage by then one hopes.

Rich:I believe Blue Oak recommended this rotten financing arrangement.

A simple sale might be the best, especially if you can arrange a 1031.