Big Money Cash Close

[David Braut]

I read about a technique in a home study course by Peter Conti and David Finkel which they called the "Big Money Cash Close".  It involves a seller who still owes about half of what the home is worth.  The investor agrees to "bring in new financing" and gets a new mortgage to pay off the underlying first loan balance at closing.  The seller agrees to carry back a second on their equity.  A key point in this strategy is that the new first loan is not a hard money loan and has an interest rate equal to market rates and is amortized over 30 years.

Has anyone else heard of or used a strategy similar to this one?