Cash Back At Closing ?

I was wondering what techniques have the many good folks of the REI community used to make this a reality.

What is your best techinque to get cash back at closing? ???

Heres a couple:

Seller forfeits tax prorations (assuming he’s ahead…lol)

Concession of Repair money at closing as opposed to credit to purchase price (here you get the money - but your paying for it-unless purchasing with cash)

If your also the realtor - sale part of commission


Concession of Repair money at closing as opposed to credit to purchase price (here you get the money - but your paying for it-unless purchasing with cash)

I have studied some on this method.

Would you mind painting me a picture or a simple example of how you have used this technique yourself on one of your deals?

Thank you in advance for your response. :slight_smile:

I have never used this method myself, but my realtor/Broker buddy buys Rehabs and has used this when there is some equity in the house and the owner just wants out.

What he simply does is make an offer at an agreed upon price with the stipulation that a piece of the sellers proceeds be paid to him to make the following repairs required to get a C/O. The repairs are listed in the contract for X dollars. This is based on the premis,that the buyer wants the repairs done by his own expert contractors. At closing, The Sellers proceeds are distributed in the usual manner i.e. pay the bank, the buyer for repairs, pay the lawyer, agent,etc. It’s pretty simple. I don’t know if this would work on Big Money takebacks as the Lender may have concerns of funding a pig in a poke. But for a couple thousand bucks-should be ok.


Cash back at closing?

Two very simple ways.

ONE. Buy and do a quick refinance and pull out what you need. There are several lenders that have no seasoning, cashout options available for good to great credit borrowers.

TWO. Go with a lender that will do the loan based on the appraised value or the tax value of the property. Again, there are several that will do 70-80% of one or the other, that’s regardless of purchase price. So if a prop is valued at $100K and you buy it for $50K, then you can pull out $20K minus closing costs.



Thanks, and I understand exactly what you are saying.

My question is where have you found lenders that will do both of these? ???

My first property was the best deal,

Wrote contract for 14,000.00 to purchase home, open home equity line for 55K at closing, paided for the closing out of the home equity line. 12 weeks of repairs, 5 thousand cost, sold for 65K.
Talk about cash back!!!

great profit on the first deal and I was hooked.


Yes I have Wallace.

I do them often. However, since the next question from someone will be “Can you tell me who you use?” my answer there is no, I can’t. Not trying to be rude or anything, but good mortgage brokers/lenders typically are very geographical, ie they only work a specific state or even counties within a state. So my lenders probably won’t do you any good anyway.

My suggestion is to start calling mortgage brokers, either by thumbing thru the phonebook or by getting referrals from other investors in your area. One of the best places to look for these type of loans is from small local hometown type banks, especially if you have developed a relationship with a lender there.


Thanks for the Great Ideas Guys and Girls! ;D

Have an Awesome Day!