You can just create an all inclusive trust deed! (A.I.T.D.) It's also nicknamed a "wrap".
He can also sell that contract after he has created it! (I buy them!)
But the ability to sell it greatly depends on how much difference there is between the underlying 1st and the wrap that he is proposing to create. The ability to sell it also depends on the interest rate, the payer's credit, the length, amortization and balloon amount.
-Try to pick a payer with a 650+ credit score, when they come to look at the property ask them to have their credit report in hand to show they mean business.
-Make sure the interest rate is higher than the underlying 1st position (you'll be keeping the difference for the amount of the first, good deal- huh?
-Make sure it is the same length of time as the first.
-It is also wise to have a 10%(or more) cash down payment (15% if it is not owner occupied)
That is how you create good wrap that you CAN sell - and when you do sell, you can get the most money for it! I can even give some custom clauses that would strengthen the value even more! Just call me up, I'd be happy to answer any questions and give a free consultation. (760)-296-1573
Again, this is not legal advice but just my opinion of what is getting top dollar in today's market.
But if the seller does not want the option of liquidity than create the AITD however you want.
It's just nice to have the option of selling the note if you so desire.
You can reach me through my website:
If it is such a great deal, I'd highly recommend you speak with a RE attorney soon to represent your interest. I know of a few that we do some business with. They would speak with you for a free consultation, but then of course there would be fees if they helped draft or review any agreements or deeds, etc.
You don't want to get burned. I like the guy from California's answer, but as he said - he is not an attorney, and also he does not specifically know Mass. state law.
If you need any further help, please contact me. Thanks and good luck,