Hi BP,

I'm looking to purchase either via seller financing or assuming the note (assuming the bank accepts). I'd prefer assuming the note. The current note is with a hard money lender. 

If I purchase via seller financing, I'd immediately get the property refinanced with my preferred lender to pay off the hard money loan. If purchased via assuming the note, I'd work with the current lender and refinance out of the hard money loan and into a 30 term loan.

With each approach, how does taking over the seller's current note impact them on their taxes? Do they have to pay taxes on the note amount I take over for them? Is there a way to prevent the current owner from paying taxes given this situation? I'm well aware of 1031 exchanges and investing in opportunity zones. 

Thanks in advance!