Heck I’ve seen 30% on a $10,000,000 land purchase where the developer needed the money for entitlements.
I think everybody’s point here is that the real purchase price of the above was $7,000,000. The 2nd point is those cash backs should all be disclosed and aren’t.
Hence what is really happening in many cases, the above is being listed as a $10,000,000 sale with no information on cash back and the lenders often are kept blind too.
