Good Deal, Or Not?

[Jason Jones]

There is a devlopment deal happening now in Greenville, SC. You buy a lot on the fairway of a golf course. You put 5% down and the developer gives you 5% back at closing, plus the first 2 years of payments, and they get the option to buy it back.

Here are the numbers:

$269,000 lot
$13,450 5% down payment
$13,450 cash back at closing
$47,920 cash back at closing

You then have 2 years to decide to:

a) build on the lot
b) sell the lot back to the developer
c) sell the lot to someone else

Has anyone ever heard of this? $47k cash back at closing sounds like a great deal... too good to be true???