Anyone ever start a rehab project BEFORE you closed on the property?

[Chris McDaniel]

I would love to hear any horror stories about this? I have a friend that routinely does this, he has been busted by the bank one time, they only gave him a slap on the wrist and told him to halt all work. I keep telling him its a terriable idea, but it seems to be working for him, and he has quite a large portfolio. The day he closes, the rehab is typically finished or almost finished and he drives over and puts his For Lease sign in the yard, directly after leaving the title office. 

Thoughts?