Seller carries the note.... beginner question

I’ve heard alot about having the seller carry the note… the seller being the person you are buying an investment property from or the seller being you who may carry the note for someone buying your property… anyways, what is involved in setting something like this up? Is there a special contract for setting this up or is it just a hand shake agreement saying that you promise to pay X amount for X months at X interest. I would assume there is some type of contract for this… does anyone have an example of one if that is the case? Thanks for the help.

Definitely more than a handshake. If you are the seller and providing 100% financing to the buyer (carrying the note) then you are acting as the bank and financing the transaction. You will want to have your buyer/borrower sign a promissory note detailing the amount of the financing, interest rate, repayment schedule etc. You should also have your buyer sign a mortgage document and record it to show your lien against the property.

Are these forms generic and found on the net or is this something an attorney would have to draw up?

all of the above