hello hello ,i’m very new to rei and i posted this to another forum but received no respones so here i go again.Is it really possible to get money back at closing (legally) i have heard yes and no but it was never explained to me.it would be greatly appreciated considering the fact that i intend to make 2 offers before the weekend.
“Traditional” lenders will not allow you to receive cash back at closing.
so what or who do you recommend?
You have mail.
It’s not always that easy. It depends on the lender. Some have rules that allow you to get up to 6% cash back. The other problem is the seller. If it was owner occupied for more than 2 years, then they don’t have to worry about capital gains tax when they sell if they net less than 500k in profit if they’re a couple, 250k if single. At that point, they don’t mind jacking up the sale price to give you cash back at closing. Now if it was an investment property and they’re not doing a 1031, they’d have to pay taxes so they usually don’t like to do it. Oh and it is legal to get cash back, it just has to be disclosed that’s all.
In about 5% or less of the time you do see listings where they will offer a few thousand back to the buyer for closing costs or asking the seller to pay closing costs is made as part of the negotiating process. In a soft market that’s more likely to happen, when there were lots of bidders, sellers didn’t have to agree to anything to sell their house. Depends on your local market.
thanx for the response but in this situation i have 100% finance ,1000 deposit and both sellers agree to pay closing cost so am i being greedy or what?
Greedy isnt the right word…try savvy as a investor you are supposed negotiate the best deal for yourself…this is business!!!Good Job!!!