Posted on: 13th Jan, 2008 01:26 pm
ok, i am young and trying to create finnacial wealth and stability. i have a friend who did this process through a investment company. he told me that i can do the same, and what he did was , the investment company said that they would turn over a 62,500.00 house over to me free and clear with no leins. now , in return he said that i need to go get a loan from bank of america ( e.g.) he told me that i would need to seek a home equity loan and that they would give me a 80 percent home equity loan ( 50,000) with rates that i have to pay monthly like 390.00 then once you received the 50,000. , you give the investment group 43,000.00 of hte money for the home . they will give you 7,000.00 of the money upfront for you to do whatever you wanna do with it then he says you can sell the house in a year or so and get the equity that is in it out if you dont want to continue living in it. he said so far he has done this three times. making 21,000.00 off of all three properties . how real is this and what are the stipulations ? thanks for the time - jamike
Hello JaMike,
This sounds good business. But I'm not sure how to go for this.
Give me some time, I have a friend in the real estate business who might help with some information on this.
This sounds good business. But I'm not sure how to go for this.
Give me some time, I have a friend in the real estate business who might help with some information on this.
sounds weird to me; there would need to be a whole passel of legal agreements. without them, what would keep you from re-selling the home immediately without getting the mortgage? and what would keep you from taking your mortgage proceeds and walking away instead of paying the investment firm?
you need legal advice in this sort of thing.
you need legal advice in this sort of thing.
Based on what you have written, it sounds like a sure winner.
However, your fact pattern does not make business sense. Why doesn't the investment company just sell the house for $62,500? What's to stop you from keeping the house and not taking the loan after they transfer it to you "free and clear"?
It sounds too good to be true, which usually means it is.
I think this is some sort of mortgage fraud.
However, your fact pattern does not make business sense. Why doesn't the investment company just sell the house for $62,500? What's to stop you from keeping the house and not taking the loan after they transfer it to you "free and clear"?
It sounds too good to be true, which usually means it is.
I think this is some sort of mortgage fraud.
I would stay away from it. It sounds like a scam to me.