Creative financing looking for ideas

[Adam Wigdorski]

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.