Posted by Joe(IN) on April 06, 1999 at 08:44:28:
I’ve been batting around the same idea. I would love to know what the experts think.
The big problem as I see it; you will both have a tax hit because you both “earned” $35K on the sales. But I still wonder if the deal could make sense in the right circumstances.
Joe
Double Closings? - Posted by Kev.
Posted by Kev. on April 06, 1999 at 01:08:38:
We have come across 2 TH’s that we can buy for 50K and are worth 85k (already been appraised).
What I want to do is write two contracts for each property. I would buy from the seller for 50K and then sell to a fellow investor for 85K on another contract.
We will do the same with the second TH, just reversing the buyers. We will each leave money in the TH for the other as a second note on the properties (when we buy and sell to each other).
How would a bank look at this as we are getting the two end loans for 80%LTV from the same lender? We are both getting the mortgages at the same time, buying and selling to each other.
Any thoughts or experiences with such?
Thanks!
Kev.