Home : Blogs : Charles Parrish : Charles's Blog

Get Cash from Seller - Make repairs Tip #48

48 Over-Finance

Need cash for repairs? Consider over-financing. If the Seller needs $100,000, write the contract for $125,000 with an addendum requiring the Seller to reimburse $25,000 to you at closing for repairs. It's borrowed money, but it's green!

It is important to to collect the over-financed amount at time of settlement. It would be wise to have that check made out to your contractor for the repairs and a draw schedule. You should leave a paper trail.

Make all disclosures when dealing with lenders and sellers.

Charles Parrish

Visit - www.investorsunited.com

Posted by Charles Parrish on 08/21/2007 10:06 AM

Comments (3)

overfinance, disclosusres, money is green

This post has been included in Maryland Information Baltimore City County, MD Information Baltimore, MD Information

3 Comments on Get Cash from Seller - Make repairs Tip #48

AUG

2007

very true just need to make sure the home will still appraiser for the higher amount, which is harder and harder to do in this market.

Good point Heather. I write my post directed toward investors; it should go without saying that as an investor, you are controlling the property well below market value. Therefore, the discount should take care of the appraisal coming in at the right number.

Thanks for the reply.

Charles Parrish

MAY

Also, prepare the Seller on what to give their accountant come tax time. Will save you a lot of frantic phone calls during tax season. This year in particular had a lady say her CPA made her pay taxes on that difference of which she never received. It got cleared up quickly and she apologized for her behavior (actually left nasty phone calls and threatened a lawsuit)...people get crazy stressed when it comes to taxes I guess.

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?