It doesn't matter if the price is $20k each or $200k, the way to earn the best ROI is to find a deal where you put down a relatively modest amount of money, use a loan for the balance, and still achieve cash flow (and/or rapid pay down of principal in the case of short-term land contracts).

I understand about not wanting to be over-leveraged, but perhaps you can find a balance.

We only have 5 years left on a 15 year loan with a rate of 3.75 balance of 320,000 on our home.  

@Lesley Resnick I think it's all about balance.

Example , if a house worth say $200k and seller has mortgage balance remaining for $50k . is it illegal to sell that property with seller financing ?

There is funding available that would allow you to finance between 65-70% of the purchase (depending on property type)---are you coming to the table with the balance or is the 10 million dollar request a piggyback to 1st you have already secured?

There aren't an abundance of small balance commercial lenders that will entertain loan amounts below 250K---I know a couple that will though...Regards,Scott Miller

I have recently have the Second lenders trash the deals by demanding the $1K or such at closing plus a personal note for 50% of the balance of the second note, to be paid over 10 years or similar.

Yep many judgments never collect.Just like deficiency banks will go after a borrower sometimes and wait.With both types they just pay an attorney to file and record it.You leave it alone and eventually one of 3 things will happen.They will file a BK.They will want to buy a house or clean up the credit and will offer to pay part of the balance for a release or pay in full.So if the amount owed is substantial you pay the attorney to file and play the percentages on collection.

This loan would be a small balance commercial loan so while the terms are higher because of the loan amount, there are lenders for this.You would be looking at 30% down, but the seller can hold a 10% second.Rates range from Prime plus 3.5 up to 9% with a variety of terms available. 700 Credit score is needed for this program.PM me if you'd like to know more.