hope all doing well and make good business!!
i want to buy family house to rent.
if i put the regular 20% down payment and rent...i can do it once and thats it...
my idea was to find a seller who willing to sign contract higher than the sale price (but no more than market value) in this way i can get mortgage for almost all sell peice.
asking price and real value - $600K
close the deal at - $500K
if the contract will be at $500K - i can get loan of $400K.
if in the contract will be sale price $600K > i could get loan for $480K.
my questions -
1. what kind of problems can be?
2. how i can do to really show that i pay to the seller all the amount that its in the contract (so he cant ask me the different in the future...)
3. from the seller side it can be a tax problem - how can i resolve it? (biside pay him the tax for the difference...)
i would like to hear if somebody did it before and how it worked out.
and any kind of thought and feedback!