Getting cash at closing - Posted by David Hawke

Posted by khadijah on March 06, 2006 at 19:51:09:

in order to get cash at closing, you have to find a property with equity left in it after you close your loan, generally the higher your LTV the more money you can access… then you have to have the cooperation of the seller who in turns is willing to allow you to have access to the equity in the property, in other words, money tht would be going to him, would be re-directed to you…

some sellers worry about capital tax gains so there are other creative ways you have to figure out to get the money re-directed to you, i.e., do some fixing up the place and have it ‘paid’ back to you or some company that you own or have put together for these types of scenarios…

have to check the laws in your states and mke sure you are in compliance with the legal ways to 'get cash at closing, your loan officer and or title company will be instrumental in helping you to structure these types of deals.

Getting cash at closing - Posted by David Hawke

Posted by David Hawke on February 28, 2006 at 15:04:00:

I have made a couple real estate deals but have not figured out how people structure deals to get cash themselves at closing. Does anyone have any experiance with this? or can you explain a sample deal?

Thank you,

Re: Getting cash at closing - Posted by Luke Hoppel

Posted by Luke Hoppel on March 20, 2006 at 17:45:46:

A really basic way is say you are buying a property for 200K and it appraises for 205K. You can just rewrite the purchase contract to buy for 205K and get a seller concession of 5K. That will go to closing costs or cash back.
I think their is a cap on this of 3% of purchase price. For example if you had a purchase price of 200K and it appraised for 250K, most lenders wont let you write it for 250K and get 50K back.
You can do it under the table, although it’s not quite legal if someone catches you.