Local credit union loans

[John Carlin]

Hey y’all. A friend of mine just told me about a friend of his who’s buying properties in Texas with the help of credit unions. Apparently the credit unions are overvaluing properties, then the investor is purchasing at 80% of that value, that way the credit union essentially covers the 20% down payment. The investor walks away with a property and no money out of pocket. Anyone heard of this practice before and is it viable? Thanks.