Posted by sulodi on March 05, 2001 at 08:44:50:
LEGAL OR ILLEGAL TO GIVE MONEY TO BUYER - Posted by STEVEN
Posted by STEVEN on October 25, 2000 at 14:27:21:
IS IT ILLEGAL TO PURCHASE A HOUSE FOR $50,000 AND TO SELL IT TO AN INVESTOR FOR $100,000 THE APRAISED VALUE AND AT SETTLEMENT TO GIVE THE INVESTOR $40,000 BACK
Re: LEGAL OR ILLEGAL TO GIVE MONEY TO BUYER - Posted by joel
Posted by joel on October 26, 2000 at 13:20:25:
It is legal only depending on the type of loan the investor carries. FHA and some conventional may not allow it. I don’t understand the benefit to you. If you 1031, you must get a more expensive place, and if it is just a straight sale, you don’t really get anything. The seller, if he wants to show a loss at sale, may have problems witht he IRS if they find out ( I assume you would do it under the table).
I’m curious why? - Posted by S. Butler
Posted by S. Butler on October 25, 2000 at 20:42:20:
Just curious… why would you want to agree to an arrangement like this? Would there be tax implications on the part of the seller who sold the home to the investor for $100K and “giving” $40K back?
(I’m new at this, can you tell?)
Re: LEGAL OR ILLEGAL TO GIVE MONEY TO BUYER - Posted by steven
Posted by steven on October 27, 2000 at 10:22:08:
all the loans to the investors are conv. no fha loans. the investors use the money for repairs and future maintenance on the property. the money was givin back to the investors as a check at settlement from me. now we put a bill on the hud 1 for repairs and maintenance and the investors now gets the check from the title company. there is about 1-2 left over for me. is this ok.