Seller financing- when can equity be used

[Trentan Moore]

I have a question regarding seller financing. Say for instance the seller (owner) has no existing mortgage. When can the buyer use the equity of the property to purchase additional properties using a traditional lender? Or can this only be done if you refinance out of the note. Any information would be appreciated. I can also give more details if that question is unclear. Thanks

[Charlie Fitzgerald]

It's different with seller financing because you are not going to be able to encumber the property until you satisfy the balance due to the owner.  You certainly could refinance the property and pay off the seller and if there is money left over, do whatever you want with it.