Land Contract on top of Land Contract?
So I am interested in a multifamily 5 unit property. I contacted the listing agent to ask about land contract financing (as it was advertised in the listing that the seller was open to it) and she said that the current owner has a land contract on the property. Below is what the agent described:
"Land contract would be drawn up by Jack XXXX attorney who would also do the closing I have everything worked out on it. Current owner has a land contract and I have had deed-holder also sign listing agreement. Their current mortgage and the current land contract and the new buyers land contract would all be done proportionately correct for your buyer and I have reviewed the details with Jack XXXX. The current owner’s land contract was based on 5 or 6 years with natural amortization payoff. The new buyer’s will be based about 6 or 7 years amortization. and that is with the property paying off with current owner rents."
Can anyone decipher what this means? Is it a bad idea? What should I look out for? This property is a 5 unit with potential for over 20% cap rate. Thanks!