Any investors here ever obtained a loan for appraised value to get cash back from seller?

An investor wants to get his loan for the appraised value of my home, then have me pay him the amount over what I am selling it to him for back to him in cash.
Terms
his loan is for 146000 hte appraised value of my home
I am selling it for 123000 to him he wants me to pay him back the difference after closing
I dont understand this at all.
Are there any investors here that have done this before????

For my current house, I signed a contract based on the financing I had. It was one of those from that crappy eloan service so highly advertised, and it fell through. My agent helped me get local financing, and it turned out much better. Because we already had a contract, we didn't change it. After the closing, under the table, the seller gave me the $1500 difference from the new financing. They came out the same, and I got a cheap $1500 loan for fixing up the house. The loan officer and the agent knew about it, but they said what we do after closing is our business.

My point is, if it comes out the same on your side, what is the difference? It is HIS loan, and you are not losing anything if he wants to overpay you then ask for it back. He has to deal with the loan.

Sounds kinda fishy to me.

it is possible to do that but you may have to pay capital gains tax on the cash you give him since its "under the table"

Sounds like this guy has purchased one to many get rich programs on the late night infomercials. The deal is that he gets cash back at closing while you pay the taxes on it!

This is only good for the seller if the seller is highly motivated. (has to sell really bad!)