Posted by Charles Parrish on April 09, 2006 at 15:46:03:
Are you trying to defraud the lender? It could be looked at that way. But to answer your question; 1. Have the seller give you a check for 20% of the sales price to represent repairs to the property, endorse the check and give it back to the seller as a downpayment. 2. Write an offer to buy it at a discount and sell the property at auction before settlement NO BANK LOAN NEEDED! 3. Partner with the seller, write a Hybrid Offer and flip the property, seller gets X amount over your offered price and you get X amount. Sell it at auction.
You should always be fair and honest in all your dealings with sellers and lenders; things have a way of going wrong when you don’t expect it.