Not only was Kara purchasing her investment property from across the world in Spain, she was chasing a timeline due to the 1031 exchange rules. When you sell one investment property to buy another, you can avoid taxes by doing a “tax deferred exchange.” It has a strict set of rules to follow if you want to avoid paying taxes on your sale, and one of them is how quickly you need to identify and close on the next place. So we have a buyer in Spain, on a tight deadline, looking for a needle in a haystack. She wants new construction, either a duplex or house with ADU. Being in Spain, she won’t have the bandwidth to do lots of fix up, so newer was at the top of her list of important boxes to check. We found that her top price of $600, just wasn’t quite enough. There were options,but they were all just a little bit more. Being in Spain, she couldn’t qualify for a loan here, so we got creative. We searched until we found a seller willing to carry back the balance of the purchase price, with a large portion in cash. We found it! Perfect newer construction house with the cutest detached ADU. Both already rented to some awesome folks who love their home. We got it put together just as the pandemic was ramping up. Our buyer had to leave Spain, go through testing and quarantine to get back to the states. She made it just in time to sign documents and close on schedule. We had everything ready and waiting for her, so she only had to worry about getting herself where she needed to be.
What a roller coaster! There were many moving parts to this, and lots of challenges to proactively navigate and problem solve. This is where we shine though. At the end of it all, she said it was “easy” despite everything that was going on. Behind the scenes, I wouldn’t have called it an easy one. But the goal is always to have the client feel it was. So, mission accomplished on several levels with this one. The most important of course is that Kara got everything she wanted, and on schedule!