Financing the 'Un-Financeable': A Case Study in Creative Collaboration

[Jesus Suarez]

Some deals are straightforward, and others require a level of creativity, persistence, and teamwork that truly defines what we do. I recently worked on a transaction that I’m especially proud of.

A client came to me looking to finance a distressed property with tremendous potential. The property had a market value of approximately $950,000, but because of its condition, the client was able to negotiate a purchase price of just $678,000. Even after factoring in an estimated $50,000 renovation budget, it was still an outstanding investment opportunity.

The challenge was that the property was in rough shape. It failed to meet the minimum standards for insurance and livability, making it ineligible for conventional financing. On top of that, there were city liens attached to the property that threatened to derail the transaction. At first glance, it appeared to be a cash-only deal.

Instead of accepting “no” as the final answer, I immediately partnered with Realtor Oswaldo Esteves, and together we developed a strategy to make the deal work.

While I restructured the financing and outlined exactly what the lender would need to see for approval, Oswaldo negotiated extensively with the seller. We also worked directly with the insurance company to address their requirements, which included the installation of a new roof and a new water heater to make the property insurable, they insured the property giving us 60 days to install the new roof and water heater.

At the same time, we opened discussions with the city regarding the outstanding liens. Through persistent communication and negotiation, we were able to secure a partial release of the liens regarding some violations, allowing the transaction to move forward while committing to complete the required repairs within 30 days after closing.

It was a complex process involving the lender, seller, insurance company, city officials, and multiple service providers. Every step required coordination, problem-solving, and constant communication among all parties involved.

The result? The loan was approved, the transaction closed successfully, and our client acquired a property worth approximately $950,000 for $678,000, with only $50,000 in planned renovations. What initially appeared to be an impossible transaction became a successful investment opportunity.

This deal is a perfect example of how creative financing solutions, strong negotiations, and true teamwork can turn obstacles into opportunities. It’s moments like these—helping clients achieve goals that once seemed out of reach—that remind me why I love what I do.