Equity
If i say buy a property that is listed for 100,000 but appraises for 150,000 for 130,000. take 20,000 out and say i use it for repairs and 10,000 for closing. Can i turn around and sell it 150,000 a month or two later if i dont have a pre paid. Is this legal?
If you say what?
If I understand correctly, it looks like you just found a property that has a market value of 150,000(assuming the appraisal is accurate, which I would add that you should do some additional market analysis of your own just to make sure it is truly worth 150,000). If this is true, and you want to get rid of it in 2-3 months to cash out, my suggestion is that you "lock" this property in a contract for 3/4 months with some "contingencies" in the contract that will allow you to exit in case you cannot find a buyer within those 3 months. You can turn around and sell property for 130,000 and pocket 30,000 for yourself. The seller gets asking price, you win 30,000, and buyer buys property 20K under market value. Everyone wins!... As far as what to say, or not say, you do not have to tell seller anything as long as you write "and/or assigns" next to your name in the contract.