Creative Purchasing Question

3 Replies


I am looking to buy a property and use my HELOC for the down payment. I would like to be able to pay most of the down payment back shortly after I purchase. I have heard on the podcast of people setting a purchase price over the negotiated price and then getting the difference back after closing. For example, we agree to a purchase price of 250k. I end up paying 270k and get a loan from the back for that price. After closing, he pays me 20k to help me with down payment costs. He still gets the negotiated price, but it helps me quite a bit. How is this strategy structured?


@Joe M. I'm sure this isn't your intention but in my experience what your suggesting is not legal. The property could theoretically appraise for 270k but I am almost certain there is language in your loan docs that would not allow this.