The facts of this purchase could be interpreted either way. 

I find a lot of people just assume that since they inherently trust their friend/family member, a lot of the "what ifs" and worst-case scenarios are not hammered out in fine detail which can lead to confusion and personal interpretation after the deal is closed, which it should have been addressed pre-emptively before the money was lent out.

Making a strong offer, knowing what disclosures the seller needs to be providing you at what stage, what contingencies you need to protect yourself, what timelines it's all due and how to present repair requests, interpret the title search (it's just a history), what closing costs buyers normally pay, etc. 

This phrase is attributed to the Oracle of Delphi and has been widely interpreted and discussed by philosophers throughout history.

Sometimes what the law says and how it is interpreted by overworked magistrates is baffling.

Many title companies will not provide title insurance within the 90 days even if it is sold for less than 120% of the purchase priceThe Fha 90 day anti-flip rule is a restriction on a buyer of a property using an fha loan and is usually interpreted as no contract can be signed within the 90 day period.

Just curious, did you ever go back and ask the folks at Champions, from whom you got this [mis]information, whether your interpretation was accurate?

Unfortunately not too many buyers or real estate brokers know how to read and interpret them!

Telling that same seller that you will only close if you find a buyer could be interpreted as "acting as a broker without a license.

Originally posted by Jean Bolger:I like Kurt K's suggestion... these numbers would support a price of about 50% of what they're asking.Jean,I am presently looking at two small multifamily buildings (7 & 11 unit respectively) and did the above just this week: verbally told one of the vendors I was having difficulty reconciling the data provided and based on what I see the "business" was worth about 53% of the asking price.I have since been told the accountant will be in touch next week to assist me in interpreting some of the items in the financials.So .. go ahead and tell them what their data is telling you.