Cash Back At Closing
Is there any legal way for a buyer to get cash back at closing in Texas? There is a property in Texas that has a $35,000.00 discount on it and the buyer wants to walk away with it at closing. Of course, besides being legal, is there a technique that is acceptable to lenders that would allow the buyer to walk away with cash at closing?
i would tell you what i think but everybody will flip out saying it is unethical so i guess i will just say look for a rehab loan
Tell me what you were wanting to. I would appreciate your thoughts.
putting a lien on the property before you get financing and then collecting the lien cash at closing
Can you give me an example?
no, people will get mad at me
i would talk to a qualified attorney about it. some people say its slander of title when leining a property that you dont have the right to lein. but i would definetly talk to an attorney to get a straight answer.
I will consult an attorney. Can you recommend a technique that works?
Are there any other ways to get cash at closing for the buyer, legally?
If you are getting a good enough deal and the place needs rehab, you can get lenders to give you repair money, you will be a premium for it and most likely will have to use a hard money lender. We just closed on three duplexes that need repair and got a check for 15k toward repair at closing.
[addsig]
Great advice. Thanks. Do you know of any other ways to get cash at closing?
In regards to your question
"Is there any legal way for a buyer to get cash back at closing in Texas? There is a property in Texas that has a $35,000.00 discount on it and the buyer wants to walk away with it at closing. Of course, besides being legal, is there a technique that is acceptable to lenders that would allow the buyer to walk away with cash at closing?" Simply buy Carleton Sheets course Titled: No down payment real estate course
He explains in detail how it is done, and you may be able to call and get your questions answered from a legal standpoint.
That technique has been used for many years. Its purpose is to get around the seasoning of title issues by concealing material facts from the lender. (i.e. buyer not actually being in title until after closing.) If the lender requires that you, the Buyer, must be in title for 6 months to a year to qualify for certain financing and if the lender is misled to believe that title is in a trust because of the placing of title in a family trust named after the seller before closing and you the buyer are vested with the beneficial interest of the said trust at closing, then the buyer and seller will have committed loan fraud against the lender. This is because you, the buyer, were not in title for the required period of time.
(FRAUD: Any act, expression, omission, or concealment calculated to deceive another to his or her disadvantage)
so basically if your looking for cash back from the seller one should create a deal with a 5-10k repair rebate added onto the purchase agreement?
Hi Guys,
Thank you all very much for your great advice, support and encouragement...It certainly inspire confidence!!!
The equity in the Single family rental house, which is La Quinta, CA is about $200K and we have owned the property for almost 2 yrs. The equity in our primary residence in Morgan Hill, CA is probably around $150K and we have owned this one for 14Months.
Now here is my take so far …you guys can step in and tell me if I’m wrong …
I believe with the right training, studying how-to and instructional books and magazine, I believe I can perhaps make it a go in (1) Tax Liens/Deeds (2) Flipping properties (maybe just a one or two per year to start with) Pre- and Foreclosure might take more of a veteran and since I’m not a handyman rehabbing would probably not work and since I don’t know anything about Mobile homes or Option leasing …. Multi and rental units are probably not for beginners anyway? … There aren’t many safe choices …In regards to being a Bird Dog while I totally agree with you guys because it’s an excellent ways to enter the market and learn however I like to think I’m paste this stage!
Todd
There is no safe way to do this. You need to figure out what your goals are and then find a way to achieve them. Do you want to Buy and Hold capturing appreciation along the way?
Do you want to buy low sell high by creating value making the money quicker? Without a job you are going to need some cash for down payments (beyond the 25K to do a No Doc loan so that means to get going you need to either
A) tap into the exsisting equity somehow to have ready to go when a deal comes along or
B) Be prepared to eat a lot of fees using HardMoney or
C) Find sellers willing to carry back.
These are the options that I am comfortable with I know that there are other creative investing methods (sub 2 etc)
Since almost all of CA is in a sellers market right now unless someone advertised seller financing they probably wont. They can get a buyer to cash them out now.
Using Hard Money makes sense when you have a property with a ton of profit potential and the 25K you have may cover the costs to add the value....
The scores are great keep paying on time.....
Get a new loan cash out some equity for INVESTING. not a new car or boat....Keep it working for you. Find a deal (this is the hard part as there is a lot of competition) Know your goal and move forward..
Good Luck
Brian
Brian,
Thank you for your great advice and suggestions
Now ...Can anyone recommend a good educational or training book on “Flipping”
Todd