135K 120K switcheroo ? - Posted by Matt
Posted by Matt on July 09, 2003 at 12:18:15:
Made a call to someone who was selling a house for
let’s say $ 1000 month - by owner.
(I’ll change names and amounts here to keep this anonymous…)
Got the person on the phone. He is an investor who
had done a rehab on this home. He told me I could buy for
120K from him, but he would “officially” be selling for 135K to me - and I could tell that to the bank. He has a friend and an appraisal for 135K also - so it looks like
there is 15K equity in the property.
Then, after closing - he would “give” me 15K back in cash
when deal was done. Didn’t go into much more than this, but my alarm bells went off. Said he has done multiple deals
like this - and banks don’t care.
Not sure of all the details - and I’m not considering this, but was just wondering what people thought is going on here - fraud - or just fudging numbers within the law?
Seems to me there would be legitimate profit from the rehab
itself, and then selling with payments, L/O etc.