Best Creative Deal You’ve Done

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  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    9mo
    Quote from @Heidi Christensen:

    What’s your favorite real-world example of creative deal structuring that actually worked? Inspire us!

    Our "as-is" program. We will use the current as-is value of a property as the value we lend on and lend up to 75% of that value. So, if a property appraises as is at 300k but being purchased from an estate as a common example at 230k. We would lend 225k on that property requiring 5k in down payment (plus closing costs). Other programs would require you to put 20-25% down on the 230k which would be a min of 46k (plus closing costs).

    This is short term acquisition financing, so we turn around and refi into a 30-year fixed using the actual value (in this case 300k) as there is no seasoning/waiting period for rate/term refi. so, you do have closing costs again but say those are 5k you are still 40k+ ahead in cash in your pocket.

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  • Doug Smith
    Lender · Tampa, FL · Member since 2013 · 2k+ posts · 2k+ votes
    9mo

    About 20 years ago when I was handing commercial lending for a community bank, I had a deal that I worked really hard on, but it was really cool. An old government building was on the historic registry. They government agreed to sell the building to a non-profit, but they would only do a land-lease for 99 years. Since it was a non-profit, there were no personal guarantors. A condition of sale was that the buyer had to give space away to local non-profits, which made cash flow a challenge. The building was also full of asbestos that would take $16 million to mitigate. I created a plan where we would sell the tax credits from the project to fund the equity injection. Since the loan was over our legal lending limit, we then had to put together a consortium of banks to participate the deal out. Getting something so incredibly complex approved by the board was really, really cool. That might have been my favorite deal I've ever worked on. 

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  • Caleb Christopher
    Title Representative · Denver, CO · Member since 2020 · 126 posts · 66 votes
    8mo

    I picked up a house subto in Pueblo and the sellers paid me $200/mo for 18mo.
    3.625% interest rate with 27 years left.
    And they assigned a $6K insurance check to me at closing.
    It's now a rental.

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