Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..
I mean let's suppose this hypothetical situation.
Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.
I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.
