In the world of real estate investing, some deals are more complicated than others. Sales Director Israel Lopez recently helped an investor navigate a particularly complex transaction—one that involved a house literally jacked up 10 feet in the air.
A Foreclosed Property with a Big Opportunity
Our client identified a promising investment in Oakland Hills, one of the most desirable neighborhoods in Oakland, California. The property had been foreclosed on by another lender and was available for purchase at $500,000. The real estate investor planned to put in $660,000 in renovations, ultimately targeting an after-repair value (ARV) of $1.6 million. With just over a 25% margin on the deal, this was an opportunity too good to pass up.
The Challenge: Title Insurance and Mechanics Liens
The biggest hurdle? Securing title insurance. The previous investor had undertaken a major renovation, lifting the house 10 feet to add 1,200 square feet of living space in both the basement and upper levels. However, complications arose due to prior contractors who had worked on the property. Title insurance companies required assurance that all mechanics liens were cleared before proceeding. Without this, the deal was at risk of falling apart.
How Certain Lending Made It Happen
The investor initially worked with another lender who struggled to navigate the complexities of the title insurance issue. That’s when Certain Lending stepped in. With our expertise in handling unique real estate transactions, we worked diligently to resolve the title concerns, ensuring that all outstanding contractor payments were accounted for. Once the title was cleared, the deal moved forward seamlessly, allowing the investor to close on an exceptional property.
A True Win-Win Situation
By successfully structuring this loan, we not only helped our investor secure a lucrative deal but also assisted the bank in getting the foreclosed property off its books. This transaction exemplifies Certain Lending’s ability to tackle challenging deals and create win-win scenarios for all parties involved.
Check out the full story in Israel's Instagram story below, where he breaks down how we turned this complex deal into a major success.
