Profit Sharing
I wanted to check the validity of this thought.
Can you on the HUD 1 share your profits to a third party beneficiary. There is a line for that is there not?
Would this be legal - To have a so called partner
and we go in and we know the seller. We get a loan that is higher then what he wants to sell it for but is still under apprased value. But instead of giving the money back to us which would be illegal. He puts in the hud 1 the difference from what we loaned it for and his REAL asking price to a third party which would be my partner.
Is this legal or just a big sham.
Thanks
Correct me if im wrong, but it sounds like your bascially just trying to take out more money to fix. For example...the house is worth 100k, your getting it for 75k, and your taking out a loan for 90k for rehab?
Eric
[addsig]
I can only infer from your question about the disclosure on the HUD1 is related to a short sale acquisition. If that's the case, then you won't be showing a profit... since the mortgagee will want every last available penny from proceeds.
If you aren't asking about a HUD1 pursuant to a short sale, then disregard my response.