Creative Lending Found Or Not?
So here’s the deal.
Wanted to sell a rental to another investor 7K under appraisal. Buyer wants to use the 7K in equity to help with loan and closing cost.
So we raise the price 7K which it is appraised for.
He gives me a separate contract from “Advanced real estate services by Nova Star” an out of state company, where I agree to pay them at closing 7K for consulting fee.
They have another agreement with buyer where they loan him the 7K. (Actually a loan he doesn’t have to pay back so they give him back the 7K).
On my end do you see any problems?
I should be allowed to pay a consulting fee, real estate fee or any other selling fees and not have it affect my capitol gains. Am I missing anything?
This seems more legal instead of selling for 7K more and giving him back 7K after closing.
I am just being offered a certain price for my property if I agree to pay a fee to a company that assisted in closing on a property with a buyer. There is no mention the price would have been different if I did not use them. The contract I have with this company only states I will pay a 7K fee for them to assist with closing.
Thanks for any suggestions
Do you trust that the 3rd party will do what they're supposed to?
The buyer might be in trouble if he's audited and the loan doesn't charge interest.
I do not know of any states that require licenses to broker commercial mortgages. What if you told the title company or whoever is handeling the closing to add this charge as a consulting fee or such.
Very interesting idea and I am waiting comments about others who have had experience with this.
It can't be loan fraud because it is on the Hud1 and although it may be unusual, there is no law that prevents me from buying your pair of shoes for a million dollars, for example.