Refinancing a seller financed deal

[Brandon Callahan]

Suppose you get a seller to agree to seller financing, and part of the reason the seller agrees is because the seller wants the tax advantages of not getting all the sale proceeds all at once.

Now suppose you want to refinance with a bank at a later time. Is this refinance going to mess up the seller’s plan of getting paid out over time? Additionally, is it common for all seller financed deals to allow for refinancing?

Seems like bad form if you spent time pitching a seller on the benefits of seller financing only to refinance the deal and the bank pays off the balance of the note all at once.