Creative seller finance

[Duriel Taylor]

Hello everyone, 

I hope everyone's investments are going according to their desired plans. I am having a tough time understanding this seller finance strategy someone shared with me. To summarize, I'm looking to acquire rental properties, mostly turnkey. In the past I would save funds for down payment and structure a deal with the seller with seller favorable terms/conditions. An investor shared with me how she creates seller finance deals. She said she will have the seller create a note/mortgage then take that note to a lender then refi (the note) then use the cash the lender gives to payoff the seller. First question I asked, is the asset free and clear? She replied yes. At this point I am not sure what additional questions to ask to get a better understanding of this strategy or even in theory if this works. Could someone help me understand this better or if someone has done something similar to this please share. I look forward to hearing from you all. Enjoy your day. 

Regards,