Need advice on a land contract deal with a twist
So a family member of mine is looking to sell a trailer and the land that's with it.
There was previously a house on the land, but 2 year ago a tree fell on that house and with the insurance money he bought a brand new extended singe wide trailer for $57,000(paid in full). I always thought of trailers as trashy, but this one is pretty nice. It was also barely lived in, as he used it as a "camp" or getaway on the weekends.
He paid off the trailer but didn't pay off the land (previously the mortgage for the house) and still owes $9,000 on the land plus $3,000 in back taxes.
We came to an agreement for a land contract at $8,000 down and $500 a month for 5 years and then I own it all. The issue is he is going to use the down payment to pay off the taxes and continue to pay his monthly payment with my 500 a month until the land is paid off. I was worried about protecting myself and him not actually paying the land off. So we came to this agreement:
He will sign the title of trailer to me for the $8,000 and do a separate contract for the land at 500 a month for 5 years. This makes me feel better as I am getting a trailer worth a lot more if he fails to not pay the land side of the deal.
Is this a good way to structure this deal? Any suggestions and comments would be great. Thank you