Seller Take-back of Renovation Costs in Bridge Loan

[Robert Walden]

I'm exploring a creative financing technique where the Seller raises the agreed-upon $60,000. sales price of the property by my $15,000. estimate of repairs. That will qualify me for a bridge loan with a 75,000. minimum threshold and an estimated $110,000. ARV (based on rental income of $2,550. gross per month, and an $85,000. owner-occupied ARV). The additional $15,000. is to be placed in an escrow account by the Seller at close, from which I will draw as needed until expended for repairs and furnishings. My real estate attorney says its legal, as long as its clearly stipulated in the purchase agreement. However, he thinks some lenders will balk at the idea. I plan to apply for a Kiavi bridge loan. Has anyone ever done a transaction like this? Any suggestions? (Cash is in short supply, so I can't buy it outright.)

Thanks for your help!   :-)