Cash-Back Deals


#1

I’ve been working with a lot of real estate investment specialists for the last few years and have recently been told about deals in which a home is sold with a significant amount of money coming back to the buyer.? Does anybody know specifics about these?? buying a house for 150K with 35K - 50K coming back to me sounds a little too good to be true, is there a catch?


#2

Hmm… sounds like loan fraud to me and going to jail would be one heck of a “catch”. Anyone else heard something about this?


#3

There are many legal ways to create cash back deals if in fact the equity is trapped by the current conventional financing Credit Catastrophe. I specialize in Equity Engineering using Investors, Hard money lending, existing financing, and tried and proven Statute backed equity share instruments to facilitate many Real Estate transactions that would otherwise stagnate for 5 to 10 years in California. Most other states have a much shorter recovery period.
?
Each transaction we do is specifically engineered to comply with and disclose all possible legal aspects including Banking, Real Estate, Consumer, local, state, and federal tax laws.
?


#4

The current conventional financing Credit Catastrophe?? Equity Engineering?? Statute backed equity share instruments?
?
Do you come up with these terms yourself or do you have an official Term Creation Team who work on official sounding terms to dupe your clients?


#5

Be an informed investor and compare the risks and rewards of NPV, IRR, and cash on cash return from any investment including real estate!
?
Evaluate Risk and compare to other returns!!!?(bonds, mutual funds, stock, etc.
?
If all the amateurs who purchased the second and?third ?homes (50%) in 2006 had reserves to cover their payments during a downturn. We wouldn?t have the current crisis in foreclosures.
?
Do you need help with a single mortgage hardship yourself? If so I can help.
?
If you were of the 50% in 2006 speculation bubble you will see some pain but I have some solutions that could ease your pain.
?
Contact me if you or someone you know need help. ksunderlin@gmail.com
?


#6

?
Real estate brokers representing buyers can give cash back from their commissions to home buyyers.? DOJ indicated that such buyer broker? rebates are good for home buyers and?promote healthy price competition amongst realty brokers.
?
David Gorman/ Real estate broker
Cashback Realty.com
?
?


#7

Hi David, Thanks for the contribution. I’d like to suggest a bit of caution though given the example originally given of $30-50k back on a $150k purchase. A judge once explained to me the reasonable person test, or smell test. I believe a lot of fraud probably comes down to that. When the market first started heading down I would regularly receive offers for $50k over asking, and asking for $50k back outside of escrow. This would have likely worked with the right appraiser - the market was moving down so quickly it wasn’t hard to find higher comps. But I know loan fraud when I see it, and wanted nothing to do with these. As you know lenders review the settlement statement, and with rare exception they’d never loan on such a transaction. Coming back to the smell test - if it wasn’t loan fraud then what would be the point of the $50k back? If the buyer had the cash they wouldn’t need the cash back - they’d just lower the price instead (also lowering their property taxes which is in their best interest). So bottom line, if everything is disclosed and everyone agrees then you are absolutely right, no harm no foul. And a reasonable amount of cash back out of reasonable commissions also make sense. But outside of that - if it smells like fraud, it likely is, and I’d encourage any buyers or sellers to avoid being involved in a large cash-back transaction like the one above. Thanks again for contributing. ?