10% CASH BACK + Positive cash flow - Orlando Condo/Hotel Units

**ifsdeals** · 09-18-2007, 02:54 PM

Positive Cash Flow Hotel-Condominium Project
Right Next to Walt Disney World
Current Purchase Price: $174,900
10% Cash Back: $17,490 (after close)
Closing Cost Paid by Developer: $2,500
Many owners of newly converted units are showing a positive cash flow of around $280 per month.
Operations Overview:
Hotel-Condominium owners do not have to be concerned about the daily operations of their unit. The Management Company handles the day to day short term rental and all operational aspects of the property. 100% Hassle Free Ownership!

Management takes care of Daily Operations
24 Hour reservation assistance
Daily maid service
24 Hour engineering department
Grounds keeping service
Accounting/Bookkeeping handled by Management

For more information, please email me
Thank you,
Chuck Chiodo

**REbuyersgroup** · 09-18-2007, 04:55 PM

Is this Vista Club? That was a very OLD hotel. What is the price per sqft?

**TJ2007** · 09-20-2007, 08:07 AM

I know generally rebates to buyers from commission have been accepted as ok. But surely with the current issues in the mortgage and housing market an amount as big as 10% cash back payout on a property would have to be considered a type of mortgage fraud as technically they are proping up the values, right?

Sorry, not trying to give you a hard time, just thinking out loud...

**REbuyersgroup** · 09-20-2007, 08:14 AM

TJ; you are right on the money. Generally if the Cash Back is not disclosed on the HUD, it would be fraud.

If it is disclosed, banks look at it as a seller concession, and rarely will allow more than 6%.

There are a lot of funky ways to get the money post closing, some right, some wrong, guess the feds have to figure it out.

There are deals where the buyer is part of an investment group. The buyer contracts for property at 100% of the appraisal value. The developer has an agreement with the investment group to pay them 30% of the purchase price as a marketing fee or lien fee. At closing, on the HUD complying with RESPA, they get the money.

I have about 100 homes in several communities where the developers are willing to do this.

**TJ2007** · 09-20-2007, 08:22 AM

absolutely. There are ways to do this. and there are pretty ways to do it and sloppy ways to do it.

There is a lot of heat out there right now and you have to be careful how you present things.