Mr. Investor has a property that he owns but would like to sell. He thinks that it is currently worth $100,000. He also thinks that in order to sell the property that he may need to provide seller financing for five years by either providing the buyer with a purchase money mortgage or a land contract (contract for deed).

a. What are the advantages and disadvantages to Mr. Investor under each alternative?

b. What happens under each alternative if during the next five years the property increases in value to $110,000 and the buyer defaults?