Money Back at Close of sale - Posted by Chris R

Real Estate Investing Real Estate Gurus
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Posted by Rob FL on March 08, 1999 at 17:46:31:

In that case it would be.

Another example is rent-to-own a/k/a lease option. I lease option a property from a motivated seller. I put $500 down and rent for $500 per month and a purchase price of $50,000. I find a buyer who will lease option from me, the middleman, for $3000 down and $600 a month and a purchase price of $55,000. My agreement with the seller is that I don’t pay him anything until I find a sub-tenant.

Ultimately I get $2500 up front at closing, $100 monthly cash flow, and a $5000 spread on the purchase price.

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Money Back at Close of sale - Posted by Chris R

Posted by Chris R on March 07, 1999 at 16:33:04:

Hi, I am a Calif RE Broker, and I have seen the Carlton Sheets advertisments on TV for quite some time.

Could someone explain to me how you buy a property, and receive a payment at the close of the transation?

Are you ‘short selling’ it? (Selling it before you bought it?)

Do you somehow aquire a junior lein position which is paid off at the close?

Thanks for the info.

Chris

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Re: Money Back at Close of sale - Posted by Darrin (GA)

Posted by Darrin (GA) on March 08, 1999 at 24:14:06:

Perhaps they are doing a double closing where they purchase the property and then obtain do a no seasoning, cash out refinance. While this is done, most mortgage professionals have never heard of it, so I tend to believe your theory.

Darrin

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Re: Money Back at Close of sale - Posted by Rob FL

Posted by Rob FL on March 07, 1999 at 19:35:31:

Buy a property with a FMV of 100K that is in foreclosure (or probate, divorce, abandonned, etc.) for 60K and then take out a 70K investor loan at closing. Just one example.

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Re: Money Back at Close of sale - Posted by Chris R

Posted by Chris R on March 08, 1999 at 11:30:31:

Ok, so if you are the new owner, the money coming back to you at the close is actually your equity…?

Thanks for the info!