Using a 3rd party to buy with cash upfront, the get financing

[Abby Bradford]

Hi there, I am trying to get my first property for short term rentals. I am in a decently competitive market, and have lost a few deals to an all cash offer. My realtor recently told me about a company who will buy your property for you with cash, close in 14 days, then you buy it back from them once your financing is finalized. Normally you start the financing process as soon as your offer is accepted, concurrently. And once the cash deal closes, you rent back the property from the company until your financing is finalized, normally about 10-15 days. If you finance with this companies partner lenders, there is no convenience fee, but if you use a different lender, there is a 1.9% convenience fee. Has anyone ever done something like this before? It just seems too good to be true, and I am afraid I am missing something. Thanks in advance for any advice!