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.
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
FLU one thing I have to stress is that it was only able to be done because it was an ALL CASH deal. Not half cash, not alot of cash, not mostly cash, but ALL CASH.
So I am not so sure there will be as many of these as one would think.
However, next time someone posts about one of these hidden deals, before I shout out my opinion I will check the tax roll to see if it was cash!
