Creative Financing with Refinancing

[Alfredo Alfaro]

Hello, 

I was wondering if anyone has had any experience with creatively funding a deal with the seller refinancing their mortgage. 

If the seller is willing to refinance they would benefit from this by getting money back "capital gains tax free" because it is essentially a loan and not a sale. 

Say the owner has had the property for a couple years and hasn't lived in it for a while and has been renting it this whole time. The equity that has built up into the property he would refinance out and he could "act" as your private money lender in a sense. 

When you finish rehabbing the property you could now finance the property under your LLC or Personal and then quitclaim the property over and buy the property out.

Has anyone ever structured a deal this way or have some experience with something similar? 

Just thinking of creative ways of funding some projects if the opportunity is available. Any information is appreciated. Thank you in advance.