Help! He Got Cash Back At Closing.
I met a guy that said he would give me 10,000 for doing a deal if i let him use my credit. i thought it was impossible. Everything went succesful except he pays the mortgage late sometimes. I was wondering if anybody knew exactly what he did, or could tell me anything about it. Can anyone help?
You sold your good credit for a good price. I know this is late information but you should have done more research before entering in this type of arrangement. What normally happens is that several months of mortgage payment are stored in an escrow www.account.to avoid late payments. Additionally, another contract is put in place that says the house has to be out of your name in a certain amount of time OR he forfeits his interest in the property. Make sure you read all of the mortgage papers, you may technically be a landlord with the tenant paying rent to the mortgage company! I would check to make sure insurance & property taxes are in escrow.
Eric
well he said that a land contract will be signed in a year. and i take it that means the loan will be out of my name in a year. as far as equity i believe there is none. how can i find out if there is. ... also he told me that if i continue to bring him people with good credit he will pay me 10k. but i know he takes from closing about 60k in the name of his construction company. cam amyone tell me how i can structure a deal like that or what i would be looking for to pull that kind of money out at the closing?
Totally agree with finniganps. From your last post, it sounds like this guy pocketed $60K, paid you $10K & has NO legal obligation to pay the mortgage. He could walk away with a ton of $$ and leave you and several others holding the bag. The very first thing I would do is get an independent appraisal of the property. You want to make sure it is worth what YOU owe. Cover your bases.
God Bless,
Eric
Ok, thanks alot.... does anyone know what to look for or how to structure a deal to get 70k back at closing?
do you know how oto put together this type of deal
Quote:
do you know how oto put together this type of deal
Illegally – YES
Legal – It’s a lot tougher to do
I worked with a nice young fellow who was in foreclosure because he trusted a friend who used his credit. The way the scam worked was that the house was only worth 500k and the sellers only wanted 500k, but the mortgage broker, listing agent and appraiser were all in on the scam and got an appraisal for 750k. Everyone got about 50k at close. Everyone promised that they would work together to make the mortgage payments and to get the house sole. Well .... after about two months nobody was returning phone calls and after about one year the nice guy could not make the mortgage payment and he could not sell the house to cover his mortgage. House went into foreclosure and his credit is shot.
wow thats an interesting story.
Do you know the name of this scam?......Is there any tips or any methods you can give me or what to look for in findng a "big bargain seller"?
You just bought a house for $60k more than its worth.
Your friend is making several of these deals a month
and is not obligated to repay anything. You are. Find him and set him up to get grabbed by the FBI. they are looking for these people.
[ Edited by kimander on Date 10/01/2006 ]
Wish your deal was for 5 million. I have the best apartment financing program on the planet but it starts at 5 million. It sounds like you are looking to pay less down and you may have a reason but, as I am sure you know, the more you put down, the more monthly cash flow you will enjoy. Good luck to you.[ Edited by csw5764 on Date 09/25/2006 ]
some commercail lenders will go to 90%, but it is typically including the seller financing a note. Get in contact with a loan broker/officer. The real estate agent should have one, but make sure the person your working with financing is not tied to one lender. Make sure they can shop around.
90% is possible with some small seller carry back.
80% w/5% Mezz and 5% seller carry back = 90% CLTV.
There are different programs for different lending amounts. For your $1.7 MM loan this is the best I know about. Once you get into the higher loan amounts the (DSCR will be lower) and the non-recourse come into play along with the better rates.
Good Luck,
Robert
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