Real Estate Bloggers had this fascinating post - nearly 18 Mnths ago
Senator Barack Obama is looking to 2008 and has Presidential ambitions. Unfortunately, he comes out of the fair city of Chicago where politics is a full contact sport. To play in Chicago politics you tend to get your hands dirty. Now a suspect land deal with the “indicted” fixer Tony Rezko may derail this promising career.
A note to politicians, real estate is complicated enough if you try to make money on it for personal reasons. Also, all transactions are public records. So if you are ever going to try to scam the system, use cash, not real estate. Properties leave trails.
On the very same day last year that Obama purchased his gracious $1.6 million South Side home, Rezko’s wife paid $625,000 for the 7,500 square foot vacant lot next door. An Obama spokesperson confirmed that the senator lunches or dines with Rezko “once or twice a year,” and that he may have mentioned the available lot to Rezko. But the spokesperson said Obama never suggested that Rezko buy it.
Later, Obama decided he wanted to fence off his property from Rezko’s and balance his lot size. He asked Rezko to sell about one-sixth of his adjoining lot. Rezko agreed. Rezko paid for the fence, because city law requires him to fence the lot. Even though an appraiser valued the slice of land Rezko sold at $40,500, Obama decided it would be fair to pay Rezko substantially more: one sixth of his original purchase price, or $104,000.
Rezko, a top fundraiser for Gov. Blagojevich, is charged with plotting to squeeze kickbacks out of state contractors.