Refinancing a Sellers Finance

[Derrick Lloyd]

Hi,

So I am digging into the seller financing option since it seems like a very effective method for getting in with little money down and not having to deal with banks.

Something I am wondering about, is if the seller financing option works like a regular loan where you can refinance and just pay off the principal at any point. I know the terms of the contract can be made however the parties agree since it is an agreement between them. Does this mean that there are usually minimum amounts of payments worked in before refinance/full payout? I feel like the seller would feel ripped off if you sold them on the idea for getting constant monthly payment instead of one lump-sum for tax benefits, but a year later you refinance (maybe for the BRRR method).

Thanks!