Exchanging a property as a down payment ?

4 Replies

Here is the scenario.

My partner and I listed our flip property on sale. There is one potential buyer but he wants to sell his condo to make a down payment for our property.  He is selling his condo off the market for a discounted price since it needs some work and also he wants to get rid of it. So we are waiting for a cash offer to this condo to use that money for the down payment for our listed property.

Is this possible ?

I don't have cash to buy his condo but the condo has potential to make some money.  So is this possible to show the condo as a down payment (for a fixed amount) to the bank and get the rest of the loan to buy our property and transfer the condo on my name at the end of the closing ?

Hello @Pandu Chimata ,

I would think you have to sell both, house to him and condo to you. Which will result in more closing fees. (Consult a closing attorney)

Does the condo prove to be a worthwhile investment? 

You can always do a lease to own for a year term? (Collect rent in meantime) 

(Does he own condo outright?) Rehab condo, sell it, he takes his cut and pays you the down payment and refinances that house while you take the profit from condo. (House+Condo= more money?) 

@Scott Hollister , Thank you Scott.

I believe he owns the condo outright. I need to find cash to buy the condo. 

our urgency is to sell the house first and then we can work on the condo later. 

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