Cash Out Deals - Are They Legal?
I'm a new investor in GA and have picked up a few properties. Through a relationship, I have come across 2 properties that I do not want to hold but flip quickly. These are sound properties with cosmetic repairs required only ( less than $2k).
My question is to move them quickly, I'm willing to give the buyer cash after closing - upwards of $20k. Is this legal? And if so, how should it be done?
My first question would be why would you want to do this?
What would be the benefit to you to do this?
Now if you are talking about on paper selling the home for more than you want just so the buyer can get a larger loan and you give them the difference back this is called fraud!
[addsig]
John
I have an inside track to purchase the properties and it does indeed appraise with a hard appraisal for $40,000 more than the asking price.
The upside for me is roughly $20,000. I'd like to move this quickly without putting a sign in the yard and hope for a sale in 1-6 months.
I understand trying to inflate home prices and selling for more than the actual value is illegal however, if the value is there are there any problems with doing this?