Trade Real Estate
The key to finding real estate to trade for yours is the agent. In trade transactions probably more than any other, there is no substitute for the network of real estate contacts of a good real estate agent, especially a real estate agent who will have access to a Multiple Listing Service. An agent who actively deals in trade properties may already have a listing that will match your needs.What kinds of trades are possible? Here are some examples --
- 2 Properties, one worth $100,000 and one worth $50,000. Each party owes approximately 50% on the property. Each party takes out a 90% conventional insured loan. The buyer of the $50,000 property leaves the closing table with $45,000 less closing costs and the buyer of the $100,000 property leaves the closing table with $15,000 less closing costs! Both parties take cash home from the closing!!!
- 3 properties and 3 owners. Bob wants Joe's land and Joe want's Sarah's house. Sarah wants Bob's farmhouse. At a simultaneous closing, Bob trades his farmhouse for Sarah's house and trade's his new house -- Sarah's old one -- for Joe's land. Let's see, now Bob has the land he wanted, Joe has Sarah's old house that he wanted and Sarah has that farmhouse she wanted. WIN, WIN, WIN! And, if any or all of them get normal financing, they may all leave the closing table with cash!
- 2 Properties each worth $50,000 owned outright with no liens. Each party wants the others property. A straight trade, with cash, loan or other barter to cover closing costs.
- Multiple properties, more than 3.
- barter for personal property.
- A trade with low equity, especially with an assumable loan, in one of the properties -- the real estate agent can take the equity or part of it as his commission, signing a note and second deed of trust to the seller for any extra equity above the commission or possibly taking a note if the equity is not enough to cover the commission.