Do you have a good track record of performance?

Looking back, we should have walked away from our poorest performing properties instead of trying to save them. 

Don't over complicate.Take purchase price, say $150,000$1,000 Down payment$9,000 Purchase Money Note (secured by Trust Deed or Mortgage) payable X for Y years$140,000 - Subject to existing 1st mortgage (approx balance, terms per lender's Note)You could offer another few lines concerning progressive release of funds on certain events like possession, etc.Also, you could offset seller's/attorney's concern about your payment of sub-2 loan by you giving performance trust deed that you will pay 1st or AITD Wrap of 1st and purchase money note to given them more control.

Almost to where he/she doesn't perform to the original agreement?

This is a great tip; as a newbie to google's cloud based suite of tools it opened my eyes to some possibilities I hadn't realized before.Something I discovered is that you can add additional columns to the spreadsheet to perform calculations on the values submitted from the form.

I realize that including the commission may be counter-intuitive financially since I'll now have to pay income tax on that amount, but it does allow me to get some instant cash that I can use to hold in reserves, perform repairs, or start paying down the HELOC I used for the down payment. 

PPG's Speedhide Zero is a solid performer.  

Perform an in-depth analysis of the property's economics and determine if it is a good candidate. 

I'm looking to purchase Performing Notes & Non-Performing Notes here in South as well as Southeastern Wisconsin.

I have paid a house off and sold another non-performer to stay below the 10 loan limit.