Another con in the scenario Rocky described is the possibility of bankruptcy being filed by the owner-financed buyer to whom the deed of trust and promissory note are wrapped. Even with the legal improvements in bankruptcy laws over the last few years, it's still not good if you're the guy on the other end of a wrapped deal.
A big plus in many cases is that, if your buyer has a decent down payment, you can get into a deal with no money out of your pocket. In fact, you might even be able to put some money in the bank up front. I've done it, and it's pretty sweet!
Good question, Don!
Robin
Ps. When Bill Bronchick joins us next Thursday (01/15/15) and Saturday (01/17/15), wraparound transactions are scheduled to be covered along with other ways to structure Creative Financing.
