Updated about 9 years ago on . Most recent reply
Selling willing to do a sub2 deal but wants to do a 1031 help?
so I am currently working on my first subject to deal but the seller has expressed to me he owes plenty less than what he's listing the home for sale as and his main goal is to do a 1031 exchange on the property but said he is open to a subject to deal. How can I make this work in his favor while still going through with the subject to deal? Thanks in advance !
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- Qualified Intermediary for 1031 Exchanges
- St. Petersburg, FL
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@Mike Sands, I just can't see how it will work. He has to convey the property legally to you in order to start the 1031 exchange. When he tries to do that the recorded mortgage will trigger and conveyance cannot happen apart from a satisfaction of that mortgage and boom - the subject to goes away.
If you go to the bank there is a small possibility that they would allow you to assume the mortgage. They may even allow it to happen with both of you on the mortgage. But in any event, the property has to convey to accommodate a 1031 exchange.
- Dave Foster
