You sell the property for the same $500K to an owner user with $100k down and carry back a wrap note of $400k at 10%.  

I think the mastermind would be a great way to keep accountability in taking action on creative finance deals.This group is for anyone who is interested in:- Subject To- Lease Options- Seller Financing (Owner Carry-back)- Executory ContractsI'm in the Eastern Time Zone and can accommodate the times.

If you did not require your tenant to carry this type of coverage and not name you also on the policy as insured you may be out of luck.  

@Carrie Matuga, thank you for this perspective.

You need to carry insurance, especially since there may be renters given it's a triplex.

In other words, just consider it a learning experience and carry on.

Thanks, Gary Neely Gary, Just use you standard state contract and write out the terms of your seller financing in an addendum or on the OTP itself if there's lines for additional provisions.Be clear and concise.Example,Seller will carry a promissory note secured by a 1st position mortgage in the amount $97,583.00, at 6% interest, amortized over 30 years, witha a maturity date and balloon payment due 10 years after the closing date.Hope this helps and certainly get an attorney involved if you are not comfortable drafting the language.  

They also allow improvements (with documented evidence) to the property to be backed off the sales price for basis.If you do not need the money and don't mind the cash flow, consider owner finance and carry it out for years.  

I carry the E&O for all of my agents.

i think carrying costs like interest are something investors love to omit.