How does one get “cash at closing”? Assuming I need 10k to rehab a property, do I negotiate with the seller to add 10k to the purchase price and then the title company cuts me a check for 10k at closing?
Lenders won’t allow you to receive cash back in the transaction. However, there are lenders out there who offer rehab loans on investment properties where you can receive money (in escrow) that can be used for the rehab of the property. You can even use this loan to add on to the property. Some of these lenders also allow the owner to do the work.
You can get cash back at closing without the lender having a say in the matter if you negotiate a seller lease-back. Basically, the seller would lease the property back from you for “x” amount after the closing. Builder’s do it all-day long. Ever see “no mortgage payment for 6, 12, 18 months”?
I have heard that in Colorado at least, builders are getting in trouble for this practice, and that a law may be passed to specifically prohibit this. Has anyone else heard about this?
:cool the thing we need to keep in mind is every state is not the same as far as the law AND we are only giving our thoughts here as we know them in our own states and county where we do what we do . BEST deal is ask a local contractor a local expert in finance dealling with real estate //// a title company what you want to do and then they will say what they know of the facts on the matter