Suppose that you have a house worth $500,000.00 that is gifted to you and this house is completely paid off. The people who want to purchase this house will need to go to the bank to get a loan so that they can pay me to sell them the house. Over time, the bank will make more money than the $500,000.00 they initially loaned out and I will have made the $500,000.00 in a lump sum payment.
My question here is why not "be the bank" in this scenario, and instead of having the interested buyers take the loan out from the bank they could instead pay you (more than the $500,000.00) over time. Arguably, you would make more money this way by acting as both the lender and the seller. If a proper contract was drawn up in the same vein that a bank would, it seems that you could hedge against the risk you take by collecting that income stream over time instead of accepting it all up front right away.