Question: Have assignable contract on property appraised for much more than what seller needs to net (distress sale). Any problems with initial contract between seller and LLC, with subsequent (for simultaneous closing) between LLC and me? (Objective is to take some of equity profits up front, without seller having to worry about tax consequences - as in post-escrow seller disbursements.) LLC is separate entity (separate state). Would most conventional lenders have problem - or would they even need to know 1st contract price?
Be very careful with this transaction. How distressed is the seller? Has he filed for asset protection?
Not aware of any conventional lender that will do this deal. I would use a private investor or hard money guy.
I would also be careful who’s ordering the appraisal. You would be wise not to order it. Have the lender order it.