Does This Sound O.k.
I am new to real estate investing. I am looking to purchase my first rental. I have found a local company that purchases a house, does some rehab work and places a tenat in the house. They then sell you the property. I apply for a loan for 80% and they keep the 20% loan and then after closing buy out the 20 loan for a small amount or they forgive it. Does this sound o.k.?
No, sounds like loan fraud to me. You also have no way to guantee that they will reduce or forgive the 2nd.
They told me we would discuss the repayment of 20 loan, depending on amount of the property I purchase from them. [ Edited by NancyChadwick on Date 07/22/2005 ]