Creative financing looking for ideas

2 Replies

So I know I’m not the first person to think about this .

Scenario

My buddy wants to sell me his house for $225,000. Which is a fair price on both sides

He owes $106,000 and wants to hold the remainder. We came up with a rate and term.

So can he sell me the house for 106,000 and right after close sign a promissory note for the 2nd lien position?

I want to finance the $106,000 even though I have it.

Or should we do a straight sale with a bank on the 106 and just do a promissory not on the side.

Looking for suggestions that would protect both of us as I wouldn’t want him to be worked about getting screwed over and same as myself.

You don't need a bank.  He sells it to you for 225k and when you show up at the closing, the bank (his old mortgage) gets it 106k and then he acts as the bank for the remainder. his loan is secured by a promissory note and a mortgage (recorded).  you then make payments to him/her.