Help with structuring a deal

[Joseph Grullon]

Hey BP, I need you guys help with a lead I’m working on. The seller has two properties, one is his personal residence the other is a duplex that he rents out. I met with him yesterday, and he expressed to me that he would like to do some sort of a barter. He would like to trade his two properties in the city for one property out in the suburbs. 

When he first told me this, I found it odd. He explained that for personal reasons (which he did not go into) he could not receive such a large amount of cash through the sale of two properties. This is why he said he wanted to do a trade instead.

Has anyone ever come across anything similar to this, where a seller would rather trade a property through some sort of transfer deed, rather than an out right sale? Any advice would be appreciated. 

Thanks and have a great weekend!

Joe

[Eric James]

Originally posted by @Don Konipol:

he is probably thinking of doing a 1031 exchange to defer capital gains and depreciation recapture tax.  Most are structured as three way transactions.  You don't have to actually find a suitable exchange property, numerous companies set it all up.  You merely show up at closing with a down payment and mortgage commitment.

It sounds like the seller thinks he doesn't have to do a 1031. That he can just make a "trade" and avoid taxes.