Closing above the purchase price?

[Greggory Kowalkowski]

We have an opportunity to buy a good deal and a seller who's willing to work with us on a complex closing.  The summary is we can purchase it for 85k but tell the bank we close at 110k so the seller who's a friend can hand us back $25k cash after closing which will cover the rehab costs.

Obviously this is a tad shady and I know the podcast covered something of this nature a few weeks ago. I know we are scratching the surface of a good idea but does anyone know of a safe, legal way to do this so the $25k shows up on the HUD form and comes back to us at closing?

The house should appraise 110k easy.  Any ideas/suggestions or things to look into would be greatly appreciated.