Creative Deal Structure Game- WANTS OUT FAST!

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  • A successful businessman has a free and clear $1,000,000 house in Colorado. It’s worth $1,500,000! He is moving out of the country in 30 days and needs to sell his house fast. He’ll take crypto, exchange it for foreign real estate, or cash if deposited into his offshore bank account. No seller financing. The house is in perfect condition. He has already sold most of the furniture. He seems “nervous”

    What would you do?

    Next weekend, I’ll tell you about a similar situation that happened to me the day after 9/11 —


    Thanks for these threads, it keeps the creative juices flowing.

    I had a deal similar to the one Jackie is describing.
    I bought my first Mobile Home park this way.

    In the end, my seller received $300,000 cash down. But not all at closing. Some of it was delayed.

    I was able to raise it by borrowing from a local private lender I’d done business with, paid points, etc. But the cost of that loan was over-shadowed by the return I received on my borrowed cash in the MHP.

    My relationship with the private lender was the key to being able to buy the MHP because speed was critical (at the time). We closed that loan in less than a week.

    That loan netted me $200,000. I had 90 days to get the seller another $100k.

    Since I had 90 days to sell the other properties, converting the remaining equity into cash wasn’t hard. I just sold the properties I had borrowed against, paid off the private lender and paid the balance of $100k to the seller.

    I was also able to utilize the 1031 exchange tax code so the profit in my held properties was not taxed.

    My deal included seller financing, but it’s not necessary for the purpose of this conversation.

    My ‘equity’ was not earning a reasonable rate of return before I exchanged them for the MHP.


    What are some situations where you’d just walk away from an opportunity and the potential profit??

    Hard money loan should do it and then just list and sell retail.

    Don is right, a HML will do just fine.
    I just used property I already owned as collateral as opposed to using the property being acquired.
    Thanks, Don.

    Do big numbers make you nervous? The solution is to use an OPTION to control the property. You don’t have to buy the house, you don’t have to get a loan.

    With this property, you could get an Option for $1,000,000 ( or less), then to a Highest Bidder Sale to hopefully sell for $1,100,000. That’s a $100,000 profit without getting a loan and without buying the house. Heck, even if you only sold for $1,050,000 that’s a $50,000 profit without ever buying the house.

    Learn all you can about OPTIONS!!! We have tons of Options training here at CashFlowDepot including several recorded seminars, several eBooks, and lots of coaching calls.

    But if the seller seems nervous or like they are running from something, it might be better to just walk away!

    So, I had a similar deal to this one the day after 9/11. The seller was offering the house at a 50% discount if I could close in less than 5 days. I went to the house in Plano Texas, there were about 15 guys there who appeared to be from the middle east. There was no furniture, only mattresses, and folding tables throughout the house with lots and lots of electronic equipment. The whole situation made me very nervous so I got out as fast as I could.

    I called the FBI to tell them they should investigate the situation. They did not seem to care or be interested and said they would get back to me.

    I told the seller that I would not be able to do the deal.

    Six months later, the FBI called me wanting details about who called me and what I saw at the house. Too little too late!

    What would be a reasonable premium for an option of this size?

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