Has anyone used RE exchanging with great success?

Question

I've come across Jack Miller's books about exchanging equities etc for cash flow. A lot of his books involve Sandwich Lease Optioning properties for cash flow. Some of the more advanced strategies include a 3-party exchange to get the deal done. Example: seller is willing to sell on Lease option to me, but wants cash for their equity (which could be like $50-100,000). Instead of having that money sitting around and trading it (or borrowing it from anyone), his strategy is to find something else to trade that is worth a similar amount. Buyer finds an owner of buildable land worth $50k. The land owner deeds the land to the house seller, the seller sells to me via lease option (or sub-to), and i owe the land owner a note at a negotiated low rate. The home seller takes that land free and clear, and can sell it for cash if they like, i pay off their mortgage plus the note for the land, and i rent out the house.

is anyone doing anything remotely close to this?

Dave Foster · Answer

@Sam Epperson, Almost never in modern days.  The calculations are tough to manage.  The opportunities for incidental tax bills almost certain.  That seller would have a tax bill on their full gain in the scenario you described.

Back in the day, when West Texas dirt was cheap, it was used to equalize things many times.  But today it's almost impossible to work.

Dave Foster · Answer

@Sam Epperson, Almost never in modern days.  The calculations are tough to manage.  The opportunities for incidental tax bills almost certain.  That seller would have a tax bill on their full gain in the scenario you described.

Back in the day when West Texas dirt was cheap, it was used to equalize things many times.  But today it's almost impossible to work.

Drew Sygit · Answer

Most don't have the knowledge or work-ethic to make any real money doing this.