Seller Finance Note Words of Wisdom

[John Boutros]

Hi BP'ers,

My partner and I are potentially buying a property  that is being fully seller financed. 3% interest rate, 8% down, 900K purchase price, 5 year balloon. Numbers, cash flow, and upside work out well. 

What are your thoughts on things to look out for when doing a cash out refi in 5 years to pay off seller note in full? Any pitfalls to potentially avoid ahead of time? Appreciate your 2 cents! Thanks.

-John