Financing down payment

[Aaron Rodriguez]

I am a new aspiring investor and i am trying to understand the idea of a second note, the idea that i have is to see if i can simply finance the down payment through the seller. Does the seller have to own the property outright? how do you structure the second note? I appreciate any feedback. 

[Brent Coombs]

@Aaron Rodriguez, in hindsight, my first response doesn't look very helpful, because I hadn't quite caught onto the fact that you simply wanted to know: "Is owner financing simply the owner taking a Second note?", to which my answer is: Often, yes. [ie. If their Lender has a First, the Seller could have a Second, with you]. (Forget your "new understanding", because that is not what a second mortgage is). 

Certainly, you should ensure that they have plenty of equity before agreeing to pay them a mortgage, as well as paying their existing mortgage.

I'd be surprised if you could negotiate Seller finance - without having a (good) down payment!

There's plenty of threads about Seller financing. Check via the BPs search engine*.

*[Click on what looks like a magnifying glass, top right of screen].

And if you want the Seller to keep their mortgage open, look up "Subject to" / "Sub2". Cheers...