Buying subject to then selling owner financing

[John Langlois]

Hello All,

I am about to purchase a property subject to giving the seller $20k and then want to sell the property owner financing with $60k down.

Questions are:

Can I do this basically at the same time (using part of the my buyer's down payment as my payment to the seller)?  If so do I use an investor friendly title company or real estate lawyer?

Also my buyer's down payment is larger his balance will be lower than the underlying mortgage creating a negative cash flow which I do not mind covering - will this cause any issues I am not seeing?

Thanks in advance for your input.

[Wayne Brooks]

@John Langlois If by "seller financing", as opposed to a land contract, you mean transferring title to your end buyer, and holding a mortgage, you could not refinance as you would no longer hold title.  This set up would have potential disaster written all over it.