Hi how you guys doing… great forum by the way… I know you guys probably get this question alot but try not to flame me to bad… I heard on tv (I think it was carlton sheets) that you can get actually cash back when you buy a house… I live in Chicopee, Massachusetts and I was wondering if that is really possible and how much you could usually get back… is it a percentage or just an agreed apon amount… thanks alot ;D
I just closed on my firt house and and got 1k back with no money down. So it must be possible on some level.
I think that almost every body on this site has gotten money back at closing. I buy properties that are distressed and so are priced below market rates. What I do is buy the houses with one loan to buy the house and one to fix it up. After it is fixed up we close again on the permanent loan to roll in all the costs. After everyone is paid if there is money left over I get that as a check (cash back at closing). Lately what I have been doing is just reducing the amount I finance to improve cash flow.
An example is buy a house that appraises for $100,000 that is for sale for $60,000 that needs $10,000 to get it up to cherry condition. I take out a loan for the $70,000 with $60,000 going to the seller and $10,000 going into escrow to make sure the repairs are made. After the repairs are made I get to draw out the funds to pay for the repairs. If the contractor only spends $8,000 the other $2,000 can go into my pocket or I can reduce the amount in permanent financing by that $2,000. The final loan will be for $70,000 and I have a $100,000 house that I have $30,000 worth of equity in and $2,000 in my pocket.
Bluemoon,
Considering your example, is it possible for you to get one or two loans totalling 100k?
My question is that can you get 100%of the Appraised value.
No. My program goes to 90% value. That is why the important thing is the appraisal value. I guess you could take out a loan for $90,000 and put $25k to $30k in my pocket, but that would be fraudulent. The repair list would be some made up thing and would not be actually put into the house. There is also an inspection done by the mortgage company to accept the work that is done on the house. So even if I did that, it would not go through.
The Friday edition of USA Today mentioned that Countrywide Mortgage has been hit with a fraud where appraisers and mortgage brokers in Indiana (on some such place) were inflating appraisals and getting loans for people in Virginia. These people were taking out loans for $150k on houses worth $70k and the brokers were pocketing the difference.
I am buying ANOTHER one in Colorado for $1,046,031.00 with an appraised value of 1,900,000.00 and getting 650k cash at closing does that count.
Reo,
This is impressive. Can you provide some details as how are you getting this cash back???
Ronnie
SHOW OFF!!! 
Very impressive! Would love to be in your position in the near future. Can you give a bit more detail on this deal?
Leticia
Facey Investment Group