Special offer

Re-blogging from 12 years ago. Very creative deal!!!

Real Estate Agent with Howard Hanna RE Services, Dayton, OH

Referral from the daughter (Whom I sold a home several years ago) of a first time buyer, 55+years old, never owned home in her name, had been renting ever since her divorce several years ago. Fixed income, OK credit score, not enough trade lines to get a loan.  Wanted a small home for her.

Worked with a first time Investor who lost a job when GM pulled out a few years ago, but had enough money in IRA for his own investment.  After some consulting sessions, had him convert IRA to a self directed through Equity Trust Company, had the IRA finance the transaction on a HUD owned property in an owner occupant period, and had enough money for the rehab on a package loan to the buyer.  The buyer gave a mortgage and a note to the Investor for purchase/rehab/profit

Lot of coaching/mentoring went into the deal along with a lot of TRUST, but got it done after a brief delay due to condo fee lien against the property.  A few things accomplished in this creative deal:

  • Made a home owner out of a long time renter
  • They liked the house and most things are being updated as a part of rehab
  • Investor was able to use his IRA funds to fund the purchase and rehab
  • Investor makes decent profit, when purchaser refinances the deal paying off the mortgages
  • Investor created a good chunk of equity via the notes
  • The purchaser paid extra buyer agent fee for all additional work
  • Converted a non-performing asset to a owner-occupied property, County will start collecting taxes now
  • The General contractor is also a contractor for condo association, created work for his crew
  • Created work for sever other contractors and suppliers
  • Condo association got their delinquent fee collected before closing to release lien
  • Buyer's total payment including taxes, insurance, condo fee was kept about the same as her rent

Comments (17)

Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

I would never want to go back to 2009-2011 when the Market was full of those dreaded Short Sales 

Jan 01, 2024 07:19 AM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

I remember those days - I was lucky to be doing short sales - as painful as they were I knew I was helping some people who were really burdened by their situation. 

Jan 01, 2024 07:21 AM
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

Hello Sham - looking back into the AR archives (and a lot of other places too) can be scary as well as insightful.  By digging a bit deeper we may learn a little or a lot.  Life goes on. . .    How do we proceed on the path?

Jan 01, 2024 07:50 AM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

I started my short sale career back then and made acquaintances with a couple of bankruptcy lawyers that have been very good to me over the years. Happy New year and good health to you in 2024

Jan 01, 2024 04:11 PM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Hi Sham- you are the kind of agent I'd want fighting for me!!!!!

Jan 01, 2024 06:59 PM
Endre Barath, Jr.
Berkshire Hathaway HomeServices California Properties - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

What an interesting reposting.... I am with Michael J. Perry  do not miss it or want to see it again, Endre

Jan 01, 2024 08:56 PM
Brian England
Ambrose Realty Management LLC - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

That is creative and well worth the reblog!  We have to be willing to get creative in real estate at times!  Happy New Year!

Jan 02, 2024 05:18 AM
Roy Kelley
Retired - Gaithersburg, MD

Good Wednesday morning, Sham.

Have a great day and a very productive week.

Jan 03, 2024 03:53 AM
Kathy Streib
Cypress, TX
Home Stager/Redesign

Jan 06, 2024 07:58 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Sham. When the going gets tough, the tough get going. When things look the darkest the creative mind can point us toward the light. Enjoy your day.

Jan 07, 2024 06:02 AM
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

Your creativity along with trust both parties had for you made for a very successful sale.

Jan 08, 2024 04:45 AM
Sham Reddy CRS

Yes, indeed!!! I was so excited for both of them and grateful


Jan 09, 2024 05:00 AM
Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Good morning, Sham Reddy CRS; I love that you used one of my graphics in this post! Thanks again for calling into the show yesterday. It is always a pleasure talking with you.

Jan 08, 2024 05:26 AM
Leanne Smith
Dirt Road Real Estate - Golden Valley, AZ
The Grit and Gratitude Agent

I believe Wayne Martin captured my thought as well. Going the extra mile is what separates true professionals from the rest of the pack.

Jan 09, 2024 10:00 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude


You certainly represented these clients well and they were no doubt extremely thankful for all you did.


Jan 10, 2024 04:52 PM
Sham Reddy CRS

Thanks Jeff

Jan 10, 2024 06:00 PM
Patricia Feager, MBA, CRS, GRI,MRP
Selling Homes Changing Lives

Sham Reddy CRS - your re-blog brings back lots of memories. 

Cheers to each and everyone of us who was in the business back then and survived the market and are still here today!

Jan 11, 2024 06:01 PM
Lanette Branch
Taylor Properties - Bel Air, MD
Bel Air, MD Real Estate Agent

I like your style; it's obvious that you are representing your clients well. Wishing you continued prosperity in the new year!

Jan 13, 2024 06:11 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sham, congrats, and those days were definitely tough ones, but we made it through!

Mar 13, 2024 05:05 PM