Posted by JoeKaiser on April 18, 2000 at 24:16:36:
Cash back at closing is easy . . . if you don’t intend to keep the property. You just buy low, sell high, and close with your buyer’s dough.
Now, if you want to keep the thing, it’s a little trickier but still doable.
Usually, it means buying very very cheaply, getting a hard money loan for more than you paid for the thing, and walking out of closing with the balance. I have a hard money lender that will loan 65% of fixed up value. If I can buy that thing for less than 65%, I pocket the difference.
Example. Bought a fixer house for $22k last year. Worth $100k plus fixed up . . . lender wrote a $50k check at closing and we used the money to buy the thing and do the fix up.