Loans should always be at arm's length, at current rates and terms for similar loans, not saying you can't have a great loan, just saying don't mess around making it a funny money loan.

If you expect to hold a property for any length of time, then IRR -- which is sensitive to both the magnitude and the timing of future cash flows -- can tell you more about its expected performance.

Real Estate laws are crazy about everything being "arms length" transactions and you being that close to the owner you might want to disclose.

So if you have $80000 into it your ROI is 4.05%.We structure similar deals here in KC, and yes, you should use the Applicable Federal Interest rate (changes monthly - and varies by term length - check this at www.bankrate.com) I just wrote a 9-year seller financing deal at 1.95% (over 9 years is 3.32% I believe).

Since you are in the property, the transactions between you and the company, like you paying rent and the company paying the mortgage, won't be arm's length transactions.

So it isn't a foreclosure then.I would contact the owner and ask them to short sell, then find a couple realtors to represent each of you and make it look like an arms length transaction (otherwise the short sale won't get approved).

So I would assume that you can get this loan as many times as you would like as long as you are staying in the property the agreed upon length of time.

I think everyone is missing the fact that the buyers are buying with conventional funding, so the banks will not allow him or approve the purchase of any house not owned buy someone for a reasonable length of time.

-If you pay off a credit card, do not necessarily close it if you can; the length of time that an account has been open positively affects your score( as long as the account is in good standing obviously).

Originally posted by Joe Foster:I'm looking for creative results, criticism, or similar ways of getting lower down financing by getting money back, etc.As Bill pointed out, you're not going to find a legal way to do this in today's lending environment...even by being "creative"...You are in-essence creating a non-arms-length transaction to arbitrarily increase the value of the property and then try to convince a lender to lend against that increased value.If you think you can find a lender that won't have an issue with this, than that same lender shouldn't have an issue with just funding the higher amount, right?