We have had hundreds of successful marketing assignments
and sales; along with standard and creative acquisitions over the years some of
which consisted of straight cash transactions.
We creatively remove obstacles for lenders, buyers, sellers including
property, finance, & title issues.
Luxury Home
Assignment: Creative Marketing
Recent transactions include: a
SELLER client with luxury home on the market for two years, no
action, he was going to dump the property to a wholesale buyer. We came in and
within 90 days marketed the property offering terms and trade options, we created
multiple prospects, we had multiple offers, and closed all
CASH without a
discount on the 120th day. We
use auction strategies to harness the multiple offers. We now have the assignment to market his
additional homes.
Rebuilding Family
Relations: Absolute Auction Solution
All closed in 60 days with above fair market value
achieved. Property had been on the
market for 2 years with no offers. The
properties had fractionalized ownership with five siblings in a trust and with
an uncle and a cousin, all in their sixties.
The ownership had been in the family for over 80 years. An auction was a fair and just way to settle
the disputes. The properties were
various types, uses and locations. We
created a land split combination auction marketing campaign. We offered terms
and giving family members the right to bid with offset credits for their
percentage interest. Some sold, some
bought, new extended relatives bid. They
can now focus on being a family.
On Time Departure:
Auction Marketing
Owner listed his property for sale and was anxious to get
on with his new life in Florida. While
conducting the first open house most of the tours were not locals but
snowbirds. There was 45 days before snowbird
season was over, and they left to go home.
We suggested an auction of this high-end home. It was sold and closed in 45 days.
Business Owner
Needed Bridge Loan and a Home: Buyer
Representation
We found a home owner that owned their home free and
clear of debt and wanted to carry long term financing because they wanted the
interest income with their asking price.
The homeowner wanted safety. The
Buyer had a friend with substantial free and clear assets that would contribute
the assets as security for the homeowner loan.
The house was delivered free and clear at closing; which was used for a
first mortgage home loan. The buyer was
able to get a long term affordable owner carry mortgage secured by friend’s
asset; and a long term affordable bank loan interest of new cash from a newly
secured loan. This created a benefit of
new cash for the business and a new place to live.
Converting a
Seller to a Buyer: No Sales in Four Years; & No Sales in Sight
The Owner had Non-Income Producing Assets (land) and to
make matters worse it had debt on it. Payments were made from reserves; now the
debt service on the new debt along with the existing debt was affecting the Owner’s
lifestyle. The market study forecasted
no sales for at least two years; the default future as filled with
disaster. We suggested moving
investments from non-income producing to Income producing. We made offers on income-producing asset that
produce at least a 7% return using land parcels as down payment and placing 70%
loans at 4% giving a positive leverage effect.
Owner Assistance:
We had a
BUYER;
needing seller assistance of a trade-in.
As an alternative we negotiated an owner purchased note 10%, plus owner
paid closing costs for the buyer, plus possession prior to closing. With the 10% owner investment our buyer could
discount the trade-in property and convert to cash. We shopped the entire market picked the top
five and got three owners to compete for our buyers needs.
Solution:
- Owner got Fair Market Value for his property;
- Owner got 100% cash
- Owner invested $75,000 on a note at 6% interest
only monthly due in 5 years
- Buyer got home of their dreams
- Buyer can now sell the trade-in home and get on
with their life
Needed Cash:
A transaction: A Dentist needed cash; had many commercial
land parcels (non-income producing and could not get a bank loan). He quickly
needed $40,000 to fund his employee pension fund. I had another financially strong owner that
had a rental property with high vacancy in a town not geographically convenient
and high unemployment.
Solution:
- Owner made a loan to Dentist in the amount of
$70,000 funded with $40,000 Cash and $30,000 rental property.
- The
security was free and clear first mortgage on 80 acres of land near Las Vegas.
- Rate was 14% interest with no payments with
interest accruing for 24 months
- The property was sold to a developer and the
loan was retired on sale of asset.
- The Dentist never had to make a payment or write
the check to pay off the loan.
- It
got paid off from the sale of the land.
- The Dentist’s son lived in the same city and was
handy
- The Owner made a sale of his rental property and
invested his cash in a well secured property
Buyer Needed a Little
Help:
Buyer found the home of her dreams. She made an offer. She back out 3 days later. After
asking why, she could not get the loan she wanted, and she want to sell her
home in another state first. We agreed
to give her plenty of time to sell her house; therefore, we accepted a note
secured by real estate with no payments, with interest of 6%, due in a year; if
she paid off in six months we would not charge her interest. We accepted 65% of the cash plus a free and
clear car. She paid off within the six
months. We could have sold the note.
Real Estate plus
Business Auction:
A client wanted to convert currency back to his native
country and choose the auction route to get the cash quickly. We had never handled a golf course property
like this before. We hired a golf course
broker to assist in packaging, merchandising, marketing position, and use of
his existing database. The owner suggested this far reaching marketing
campaign; we told him his buyer was going to be within 50 miles. The buyer came from next door.
Converting an
Unrecoverable Loss to a Tax Benefit:
A residential client made a purchase during the better
2008 real estate market. When the market
softened, he purchased a larger home for their enjoyment. Our recommendation was to consult his tax
counsel on converting the home to an investment rental. He elected to convert his home to an
investment. After enjoying a return on
his investment; the property value is now bouncing back. The future value of
the asset may change the tax write off to an alternative strategy.