Would this work???

[Michael S.]

A few days ago I posted a thread regarding a recently Found SFH that is bank owned. that I was looking for stratgey in. It went unanswered, but it has had my wheels spining. I have since found possible routes but hey are not cheap. I connected with one of the LOC brokers mentioned on the board and they offered terms that would allow me to move forward with the proect, but as all of you are aware, they are not cheap. I am stil trying to do this deal, but don't want to give up most of the profit. After reading numerous posts on the board, I came up with the following scenario and am looking for feedback, positive or negative,Let me know what you think.

Here are the details again:

REO owned house that was previously purchased by a rehabber that went belly up. It still needs to be completed. The bank will only entertain cash offers. Asking 139k. I was thinking of trying to do a double closing on this property. The "A" purchaser would be my LLC and the end purchaser would be Me via a 203k loan for the purpose of primary residence. To avoid all the costs associated with purchasing this home via a line of credit, I thought I could try a transitional lender, and avaoid all the double closing costs and LOC costs via. Does this have a chance of working?

[Will Barnard]

I would be very careful in your plan of the double close and A is your LLC, etc. I am no attorney, but it appears like loan fraud.
Buying a home at $139k and re-selling to yourslef with bank financing for $203k would appear to be an attempt at loan fraud.