Posted by GlenSoCal on November 29, 2001 at 23:00:21:
: )
Giving and Creative Real Estate - Posted by David Krulac
Posted by David Krulac on November 29, 2001 at 19:20:32:
Today, I received a letter from Rosalynn Carter, the former First Lady. We’re not personal friends, and we don’t travel in the same circles, as this was a mass mailing. But the subject of her letter was a subject that is dear to my heart as well as hers. Habitat for Humanity.
As we discussed Mrs. Carter’s letter tonight over the dinner table, one of the children asked, “Why would somebody give away something as valuable as land or a house?”
Here is my answer:
I personally know somebody who donated some land to Habitat for Humanity, and can think of no more creative real estate technique than giving. Habitat can use donations of money and time as well, and can certainly use people’s expertise in rehabbing properties. The Habitat web site is www.habitat.org. And all doantions are tax deductable. Donations of appreciated property like land and houses can be donated at its aprreciated price, not its lower purchase price. (Consult your tax advisore for details.)((I didn’t tell the kids about the tax deduction yet.))
In this the season of giving, in the time of unity throughout our great country, the gift of a home to someone who otherwise may not have a home is an experience that warms the benefactor almost as much as the recipient.
There was another case of a family of modest means, who happened to be fortunate enough to own their modest townhome outright with no mortgage. Both parents worked but with four kids, there just always seemed to be more month at the end of the money. One of the bills that just slipped a little was the homeowner’s insurance. Wouldn’t you know it? That just around this time of year, as the weather turns colder, a fire started in the neighboring townhouse. The fire spread quickly and before the firemen could control the fire, this family lost everything that wasn’t on their back. Luckily nobody was hurt either in their home or the neighbors where the fire started. But with lapsed insurance, that was only one blessing. The family of six moved into one room at a less than nice motel. Habitat tried to find a home for them but none of their projects were ready for occupancy.
Habitat finances houses Nothing Down, at Zero Interest for thirty years. Is that fantastic Creative Real Estate financing or what? Well since Habitat didn’t have anything ready for this family, a real estate investor entered the picture and said he had a vacant house that he wanted to sell and he would do the same deal that Habitat would do, Nothing Down and Zero Interest. The mother of the family cried, and I think the father’s eyes were swelling up too.
Happy Holidays to all!
David Krulac