Paying more w/cash back - Posted by buster

import · October 3, 2002, 4:43pm

Posted by tim on October 03, 2002 at 17:49:31:

Is that legal??

import · October 3, 2002, 4:43pm

Posted by buster on October 03, 2002 at 16:43:17:

I am interested in purchasing a apartmentand offering 20% more than the asking price. With the seller returning the 20% overage at closing. What are the pitfalls for buyer or seller. How “disguised” does this kickback need to be? I would imagine that this would increase the sellers capital gain and raise my basis.

Thanks in advance for any thoughts.

Buster

import · October 3, 2002, 6:03pm

Re: Paying more w/cash back - Posted by Jimmy

Posted by Jimmy on October 03, 2002 at 18:03:40:

I just tried this. The mortgage broker vetoed the deal. But they also offered the solution. They would not allow me to cut the deal, and provide that seller would pay 9K worth of my closing costs and prepaids.

The mortgage broker told me to do the deal at the same price, and have an “out-of escrow” addendum, where the seller will pay a certain amount back to me.

in the end, it is the same deal. but the money coming back comes in a check from the seller at closing.

seems like splitting some fine hairs, but I aim to please my lender.