Anything illegal in this scheme?

[Ivan Jouikov]

Long story short:

- This guy, call him "Yao", bought a house for $400k a few years ago
- For whatever reason he wants to get out from under the mortgage but he's been making all his payments. His credit history is bad.
- My mentor put me in touch with him.
- Yao wants to do a short sale on the place, clean it up, and re-sell it for more. The idea is, I buy it from bank at $200k and resell for maybe 330k. Comps are 350k easy.
-Yao offered me 10% of the profits
-Yao's realtor already has the place listed for $350k, and they've had multiple offers, but they're withholding that information from the bank. They want me to make a $200k offer, which they will present to the bank.
- I will carry the mortgage and a lot of risk, but is there anything illegal in this setup?

Thanks

[Lawrence H.]

hi ivan
I can only give you one piece of advice
if you think its fraud and you are willing to do that you can find lots of ways around and getting the deal done
the question for me are you willing or wanting to do that.
the most important thing in busiess and really the only thing in business is your own intergretty so if you are will to accept a deal that on the face of it would for me damage mine I would not do the deal
legal or illegal
even deals that are legal that damage that respect I would not do
because at the end of the day no matter how many deals I do
that respect or that reference of clients or even agents is some thing that i want.
so for me is this dodgy as I say and is it going to damage my core values
and if this one does not yours it does mine
but that just me
if you are going to try to undercut a mortgagee or funder is going to the heart of investing
the person group or company that you are undercutting is the same group I have to try to find funding from.
a bank can and does make a loss and they sell at a discount.
but it make the job of a negotiator hell of alot harder to do when things like above turn up as funder think that these are not arms length transactions.
so for me if the property was going to you and only you and the vendor was getting zip thats fine by me.
as soon as you get to giving money back and not disclosing to a funder that will come back to bite you not the vendor on the rear end
as you will want funding at some stage in your live and funders don't like that sort of this and tahts why I say in all your dealing my view is honesty is the best policy