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Updated almost 8 years ago, 12/31/2016
Is this illegal? (Chapter 7 question)
Lets say I have a property that I would still like to own after filing Chapter 7. Is there any reason I can't:
Sell the property to another real estate investor
Use the money for things like property taxes on my exempt residence, income taxes, student loans, whatever
Purchase the property back on land contract
The only real sticking point I can see is that the value I 'sold' the property for would probably be below market value (to protect the buyer) and the sale would need to be contingent on me being able to buy it back (to protect myself). Me cashing out the equity should make it worthless to liquidate anyway, but unless someone will let me borrow 100% ltv, there will probably be some equity left.
Any ideas how I can pull this off, or pitfalls to watch out for?
Do you think I'll be able to find an investor? If I did 25k over 3 years @ 20%, they'd make $8,300 - and I'd keep from having to fire-sale my dream property.