Trading Deeds?

Question

Was wondering if anyone has had any experience with Trading houses.
Can just say someone in Indiana wants a house is Texas and a Texas guy wants a place in Indiana, and just traded deeds. Trade a good house for a rehab that someone wants to make money on, cars for a house, house for cars, etc... Anyone deal with this before? Was thinking of doing some of that Next Year. :mrgreen:

Bill Gulley · Answer

Never pegged you for a swinger Mitch!

I have traded several times, and a car dealer and I did alot of business together.

Trading for other assets is a great way to save on taxes, since you can name your price, pretty much;

Pretty simple, name your price and the party that is short makes up the difference.

You can use standard sales contracts to make it easier for everyone involved using the dollar amount and simply stating at closing credit is to be given for the other contract, deed for XXX dollars.

A Realtor will smile at this, listing on one house and selling the other! You can negoiate that!

Mitch Kronowit · Answer

I did something similar, but it was trading spouses. The biggest danger was one party not maintaining the new relationship properly and everybody getting their old spouse back.   :mrgreen:

Sorry, it's late, I can't sleep, and I'm feeling weird.   :wink:

Tammy R. · Answer

I'm interested in this too. I see there are no replies.  :cry:   How would this work exactly?  Do you actually record the deed but keep paying the mortgage on the property you originally got the mortgage on?  Would you do a purchase contract 'subject to existing financing' or do a rental contract with an option?  What if one of the parties decides not to pay their mortgage? What safeguards can be put into place?  Has anyone ever done this?