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Updated over 8 years ago on .

User Stats

6
Posts
1
Votes
Jayme Hughey
  • Real Estate Agent
  • Tempe, AZ
1
Votes |
6
Posts

Purchasing property with ABC deal / guaranteed rent return

Jayme Hughey
  • Real Estate Agent
  • Tempe, AZ
Posted

Hello, 

Does anyone know of a company that uses an ABC deal to purchase a property, then guarantees (something like) a 12% rental return on the investment for 5 years? I would assume that the company would use transactional funding to close the deal - but could they also use "C" money to close the AB deal? 

I don't believe that using "C" money to close the AB deal is legal, but if they were to use transactional funding would the rest of the deal be legal? Are there any laws again guaranteeing rent on a property? 

Thanks!!