Cash Back At Closing?
Is it possible to recieve cash back at closing on the original purchase? If the seller agreed to a certain dollar amt of closing costs but the costs were not as much as anticipated, who would get the left over closing cost money? Can someone tell me how to structure the contract if it is indeed possible to recieve money back at closing. Also thought maybe by getting 90% bank financing and 20% owner financing would leave 10% left over. Is that possible or would banks go for it? Any info would be great; thanks
It is possible to get cash back at closing...BUT it must be disclosed on the closing statement in order to avoid loan fraud. When the lender sees it on the loan statement , they will very likely not allow it. If they do allow it, they will want to base the LTV they are lending you on the sales price minus the cash back you are receiving.
It depends how you structure your deal, if you can ad money for reapairs you can get that money at the table, say you buy a house for 15,000 over the sell price, negotiate with the seller and state this money is for reapir costs. Have it written in the contract and tell the title company to issue you a check directly for CERTIFED repairs
Whichever way you strcture, if the seller is paying for the closing cost more then the actual cost i do not believe you can get that difference.
In case of repair money, if you ask money for repairs then you are saying that the property is in substandard condition, and the lender may charge you higher rate. The easier approach may be for you to ask the seller to pay for refinishing or redecorating.
Lenders allow 6% seller consessions which is usually used to cover cloing costs.
You can also recieve a personal check from the seller at closing for repairs if negotiated.
look at the huge number of timeshares in defaults and large 2ndary market in timeshare exchanges.
another risk if the common ownership. Do you really want to own w/ Mike and Sally.
Fixed weeks. why not just buy has LLC or TIC and bid/raffle off the weeks rather than having fixed weeks.
I do not want to be rude but are any of you on this thread in the timeshare industry? First the person talking about an LLC selling weeks...that is timeshare. Timeshare is all around and part of your daily lives and you do not even think about it. To the gentelman who bought in Ft. Lauderdale, i would love to chat with you about why you are not using the timeshare you purchased...i think i might be bale to show you how to get real benefit from it. After 30 years in this country this industry is still the fastest growing and strongest segment in the travel and leisure industry. Is it perfect...NO...name a business that really is. I love excited and passionate debate and please understand that is all this is to me...looking forward to it...
oh i forgot...the default ratio in this industry varies from region to region and resort to resort...unlike 20 years ago, you almost never hear of an HOA going under...developers maybe, due to poor management and marketing budgets gone wild...most developers who do not make it are first timers looking for a fast buck on some land they have who come along and think that they can reinvent the wheel because they do not agree with the industry standards most of us follow, abide and profit by...believe me...those of us who have years of experience would love a better mouse trap...but there are certain things that just are...thats why they call them "insudtry standards"...
oh i forgot...the default ratio in this industry varies from region to region and resort to resort...unlike 20 years ago, you almost never hear of an HOA going under...developers maybe, due to poor management and marketing budgets gone wild...most developers who do not make it are first timers looking for a fast buck on some land they have who come along and think that they can reinvent the wheel because they do not agree with the industry standards most of us follow, abide and profit by...believe me...those of us who have years of experience would love a better mouse trap...but there are certain things that just are...thats why they call them "insudtry standards"...
A warranty deed is fine, however make sure you give consideration and record the deed asap.
for some reason, the wording in my posts keep getting mixed up. Sorry if it is hard to read. [ Edited by commercialking on Date 07/22/2005 ]