December 21, 2006

Barack Hussein Obama Jr. and the Shady Land Deal (*UPDATED*)

by @ 12:08 am. Filed under Questionable Items

Here’s one Team Obama is hoping you never hear about. If you find a house you want to buy and would like to expand it just a little, but the lot is just a bit too small for your desired expansion, what can you do? Well if you’re Barack Hussein Obama Jr. you might be able to call a friend who is a Democratic Party operative, to buy the adjacent lot and he might hook you up with a desired closing and later sell you part of the lot he purchased for your expansion. At least that’s how it looks to me from what we know. To top it off, the Demo party operative was a fund raiser already under investigation by Federal authorities when Obama approached him about the land. Other Demos were already running away from the guy.

Obama on Rezko deal: It was a mistakeChicago Sun-Times November 5, 2006

U.S. Sen. Barack Obama expressed regret late Friday for his 2005 land purchase from now-indicted political fundraiser Antoin “Tony” Rezko in a deal that enlarged the senator’s yard.

In June 2005, Obama and Rezko purchased adjoining parcels in Kenwood. The state’s junior senator paid $1.65 million for a Georgian revival mansion, while Rezko paid $625,000 for the adjacent, undeveloped lot. Both closed on their properties on the same day.

Last January, aiming to increase the size of his sideyard, Obama paid Rezko $104,500 for a strip of his land.

The transaction occurred at a time when it was widely known Tony Rezko was under investigation by U.S. Attorney Patrick Fitzgerald and as other Illinois politicians befriended by Rezko distanced themselves from him.

In the Sun-Times interview, Obama acknowledged approaching Rezko about the two properties being up for sale and that Rezko developed an immediate interest. Obama did not explain why he reached out to Rezko given the developer’s growing problems.

The person who sold Obama the house worked where Obama’s wife works, University of Chicago, but Barack claims they never knew the man. (Isn’t that convenient.) The article does not mention who owned the land purchased by Rezko, but Obama answers a question that I’ll highlight later by saying “the sellers”. Which indicates someone else might have owned the land purchased by Rezko. That matters, but I’ll explain later.

The Chicago Sun-Times asked Obama some of the right questions about this shady deal, where a politician used a party money man to help him gain an expanded lot. Obama as usual offered answers that appear benign on the surface, but of course we’ll have to question how good those answers really were.

Q: Did you approach Rezko or his wife about the property, or did they approach you?

A: To the best of my recollection, I told him about the property, and he developed an interest, knowing both the location and, as I recall, the developer who had previously purchased it.

Q: How do you explain the fact your family purchased your home the same day as Rita Rezko bought the property adjacent to yours? Was this a coordinated purchase?

A: The sellers required the closing of both properties at the same time. As they were moving out of town, they wished to conclude the sale of both properties simultaneously. The lot was purchased first; with the purchase of the house on the adjacent lot, the closings could proceed and did, on the same day, pursuant to the condition set by the sellers.

Q: Why is it that you were able to buy your parcel for $300,000 less than the asking price, and Rita Rezko paid full price? Who negotiated this end of the deal? Did whoever negotiated it have any contact with Rita and Tony Rezko or their Realtor or lawyer?

A: Our agent negotiated only with the seller’s agent. As we understood it, the house had been listed for some time, for months, and our offer was one of two and, as we understood it, it was the best offer. The original listed price was too high for the market at the time, and we understood that the sellers, who were anxious to move, were prepared to sell the house for what they paid for it, which is what they did.

We were not involved in the Rezko negotiation of the price for the adjacent lot. It was our understanding that the owners had received, from another buyer, an offer for $625,000 and that therefore the Rezkos could not have offered or purchased that lot for less.

Q: Why did you put the property in a trust?

A: I was advised that a trust holding would afford me some privacy, which was important to me as I would be commuting from Washington to Chicago and my family would spend some part of most weeks without me.

So one has to wonder, why would Obama approach a party money man in the first place? I say because he always intended to cut the later land deal and figured waiting some months would cause everyone to ignore it, since he gave a charity the most recent campaign funds the guy raised for him. I think both Obama and Rezko had it planned all along. And they would have done it all at sooner if they REALLY felt it was all so clean.

They closed on the same day. He claims the “sellers” wanted it that way. If there were separate sellers, why would they require a same day closing? And if the sellers were the same entity, obviously Obama approached Rezko because he needed to make sure the deal closed the same day. And maybe this is why he got $300,000 off the asking price? Either way it’s shady.

He put the sale into a trust. Did he do this to ensure his name would not turn up on some of the paperwork of this shady deal? Was he doing it for simple privacy concerns, or to help cover his tracks?

NPR has an audio report, that does not come close to offering the details offered in the Chicago Sun-Times article. And we all know the Chicago Sun-Times swings to the Left. This is why towns need more than a single major media outlet. The only paper asking questions was only going to dig to a certain extent.

To be clear, this deal Obama made does not break any laws. But it does show he’s into cutting PERSONAL DEALS with party money men and that’s never good. Obama is sorry that he was caught. All the other talk is a cheap cover. I guess his kids are still going to that private school in IL, while he opposes school vouchers. Of course if they are going to a public school where a house cost over a million bucks, it’s probably not your average public school.

Barack Hussein Obama Jr. is just as shady as the rest of DC. He’s one of the guys who got caught early during his time in DC. Anytime he could not be content with buying an over $1.5 million house somewhere in IL without cutting a shady deal, what other shadiness would he pull? While he claims he won’t let a lobbyist buy him lunch 🙄 . Just like the rest he makes a cute front, but don’t fall for it!

update 12/21/2006 10:36PM:
A commenter over at made an excellent point about this issue.

Comment on about this post.

by franksmith

This is hilarious

Q: Was there a negotiation? Did he have an asking price, or did he just say, whatever you think is fair?

A: I proposed to pay on the basis of proportionality. Since the strip composed one-sixth of the entire lot, I would pay one-sixth of the purchase price of the lot. I offered this to Mr. Rezko and he accepted it.

(this destroys the value of the remaining property… it should have been double or triple the price MINIMUM. Notice he does NOT MENTION that he paid the appraised value… because he didn’t!!!)

Obama claims he paid above the appraised price, but he can’t say he paid a multiple of the appraised value of 1/6 of the land. It’s a fact that if you cut a lot than the value of the remaining land takes a dive. A dive usually much larger than 1/6 of the previously appraised value. Nobody in their right mind would sell a portion of a lot for just over that percentage of the appraised value of the total lot. Rezko paid $625,000. 1/6 of that is about $104,167. Obama paid Rezko $104,500 for 1/6 of the lot. THAT’S A STEAL OF A DEAL. Because in all actuality the appraisal was bogus!!! The appraisal was not of the value of that 1/6 strip, but the entire lot. Obama ran a slick deal with a political money man to keep his total bill under $2 million.

Rezko would have needed to divide the lot into the 1/6 portion and the other 5/6, to see what the 2 parts would appraise for and then tell Obama a sale price based on that. So that he’d sell the 1/6 at a true market value and ensure he’d make enough off that sale to compensate for the loss in value to the other 5/6. At least that’s what I would have done. Considering I’d be trying to get a market rate sale that results in my making an actual profit, instead of cutting a deal with a US Senator.

Allow me to explain this in terms people who might not deal in real estate can understand. If you buy a 6-pack of soda from the market it might cost you say $1.99. If you want to buy just one can it’s going to cost you about 75 cents to a dollar. That’s more than double the price of 1/6 of the $1.99 6-pack. (1/6 of $1.99 is about 33 cents.) Except with land you can’t simply add another soda to the 6-pack and resell it as a complete 6-pack. Once you cut a lot of land it’s done and there’s no turning back.

Further proof this was all a setup. And don’t go thinking that money man would not have come knocking at Obama’s door for a political favor in the future. Which totally compromises Obama’s integrity.

2 Responses to “Barack Hussein Obama Jr. and the Shady Land Deal (*UPDATED*)”

  1. SamB Says:

    Obama’s version makes no sense. According to Obama’s appraiser, Rezko’s land parcel was only worth $240,000 but Rezko paid over $600,000 for it? And Rezko sold Obama a portion of the land at Obama’s request and didn’t want a premium for it. Theres more to the story but what is so bad is the way politicians just can’t help themselves. How quickly Barack Obama and his wife cashed in on that keynote speech.

  2. Booker Rising Says:

    Independent Conservative: “Barack Hussein Obama Jr

    The black blogger opines about a growing controversy surrounding the U.S. Senator and liberal Illinois Democrat: “If you find a house you want to buy and would like to expand it just a little, but the lot is just a bit too small for your desired expa…

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