* JohnKWilson's diary :: ::
Myth #1: Obama did legal work for Rezko
Claim: Hillary Clinton during a debate denounced Obama for "representing your contributor, Rezko, in his slum landlord business in inner city Chicago."
The truth: According to Factcheck.org, "Obama was associated with a law firm that represented the community groups working with Rezko on several deals. There's no evidence that Obama spent much time on them, and he never represented Rezko directly. So it was wrong for Clinton to say he was ‘representing ... Rezko.’ That's untrue."
Myth #2: Obama knew Rezko was a slumlord
Claim: The Chicago Sun-Times reported that in 1997, Rezko’s company failed to turn the heat back on in one of his buildings, while giving $1,000 to Obama’s campaign fund.
The truth: There’s no evidence that Obama knew about problems with Rezko’s buildings. A state senator doesn’t deal with tenant complaints, and the Chicago newspapers never reported on Rezko’s problems as a landlord until after he was indicted. According to the Chicago Tribune, "in the years before 2005, Rezko enjoyed a reputation in Illinois as an up-and-coming, even enlightened entrepreneur with a strong interest in the risky low-income and affordable housing markets."
http://www.chicagotribune.com/...Myth #3: Obama underpaid for his house in a deal with Rezko
Claim: Chicago Tribune columnist John Kass wrote: "Rezko paid more than the asking price for the side lot, and Obama paid less than the asking price for the big house. It’s the Chicago way." Kass claimed that Rezko was "Obama's Real Estate Fairy" and this is "the story of the dream house the Obamas wanted and couldn't quite afford and how the Rezkos helped."
The truth: None of this is true. The seller decided to divide the lot in offering it for sale, not Obama or Rezko. Rezko had paid the list price for his lot, not an excessive amount (as the resale value later proved). The owner reportedly had already been offered $625,000 for the side lot, so Rezko didn’t offer any more money and there was no way Obama could have gotten a special deal this way. The only special arrangement Rezko provided was selling the two lots on the same day, which simplified matters for the seller. Obama paid $1.65 million for a house originally priced at $1.95 million. His was the higher of two bids for the main property. It’s not unusual at all in the Chicago real estate business to see a 15 percent price cut on an expensive house that’s been on the market for four months. Nor is it unusual that a vacant lot next door would sell to a condo developer without such a discount. In the Hyde Park market, there are a lot of upper-middle-class residents making six figures, but not very many millionaires (it’s not Lincoln Park or the Gold Coast). Therefore, a pricey mansion is very difficult to sell, while a $300,000 townhouse is very common.
Myth #4: Rezko’s lot was a front (yard) deal
Claim: One blogger declared it was "a $925,000 favor to a sitting US Senator" because "the Rezko property was never intended to be a separate piece of land."
The truth: It’s insane to think that Obama arranged for Rezko to buy the lot as his front yard, and never intended for anyone to develop it. If Obama had arranged such a deal, it would be crazy for him to spend $104,500 to buy part of the land from Rezko. There is not even the slightest evidence to support this notion.
Myth #5: Obama underpaid (or overpaid) for the slice of Rezko’s lot
Claim: John Kass declared: "Obama’s appraiser told him the fair market value of that slice was $40,500. Since that’s one-sixth of the Rezko side, it means Rezko paid $625,000 for property that was actually worth $243,000. That would make Rezko a complete fool. But he’s no fool." Fox News Channel incorrectly reported that Rezko "sold half that lot to Obama for 1/3 its original value."
The truth: The appraiser was clearly wrong (probably basing the low value on the fact that 1/6th of the lot was too small for any house, which would dramatically reduce its value standing alone). That’s why Obama decided to buy 1/6th of Rezko’s lot for 1/6th of what Rezko paid for it ($104,500). A year after the 10-foot-wide strip of land was sold to Obama, a Rezko business associate bought the rest of the lot for $575,000, resulting in a profit for the Rezkos of $54,000 from the two land sales. This sale proved that Obama paid fair market value for his portion of the land.
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