Quote from @Andrew Syrios:

Quote from @Abigail Joanna:

Quote from @Andrew Syrios:

Your money being secure wouldn't be the issue when obtaining owner financing. It would be convincing the seller (and lender) that their money will be secure. Best way to do this is by giving them a first position trust deed (or mortgage depending on the state) on the house and a note and maybe a personal guarantee. 

Yes it would be the issue. If not done correctly a seller could take a deposit or earnest money and claim it was not given unless the contract or some safety net is in place, hence me asking for advice on what others are doing to keep their money secure.

I didn't know you were referring to the earnest money. On that, you just need to make sure everything is in the contract and the earnest money is deposited at at title company. If the contract has seller lending back to you and they don't, the earnest money would be refundable and since it's at a title company, the seller couldn't just run off with it. 

Andrew I said this same thing to Chris above.. in Texas they call EM  "option money"  and its a nominal amount 100 to 500. and its NON refundable and written usually to the seller straight away.. once DD is done they can increase the actual EM deposit or walk.. but the option is earned by the seller regardless.. at least thats been my experience on about 20 plus deals I did in the Dallas market.