Posted by Bud Branstetter on June 06, 1999 at 11:27:52:
You can tell the lender that you have already given him the money, but he will probably want verification of where the money came from and that it was real. If he gave it back and took the mortgage then you are decieving the lender and it can be called fraud.
There are lenders out there that will lend you the 80% with the seller taking back a second. Few but some. Getting credit back for repair etc. is usually more upfront.
Due your due diligence, and make sure it is a good deal. Typically, 40% of the gross is taken up with management, repairs, vacancies and other expenses. Make you profit going in and not get the job of manager and handyman to make your profit.