People Wanting To "trade" Houses.
People in the community have seen the rehabs I have been doing. They are calling to see if I would be interested in taking over their property on "trade". They have good equity in their property. Any ideas on how best to do this without taking advantage? The last thing I want them to do is call a Realtor and go down that path. If I can help them out of their problem and get a good deal on buying their house and taking over their payments, this sounds like a great win-win. Any ideas how to structure this? I currently don't have any houses left to move them into (I am new at this and only have 4 investment houses so far, all rented or under contract).
Also, I'm pretty sure they will want to buy. My idea is to take their house SubTo, find another house that they like, put it under contract and L/O that one to them. Basically get them a nicer house for the same monthly payment. I would use the equity from their house as the down payment, so it wouldn't cost them a dime to move in. I would sell them the new house at or below market.
One concern: One of the folks that called me about this is retired, living on a pension and a part time job. He just wants out of the area he is in (it is going bad). I don't like the idea of putting him into a new 30 year note on a new house. He has put in his time and that just doesn't seem fair. I'm pretty sure that his selling me his house SubTo will be contingent on me helping him find a place to go that he likes.
Transaction Engineers please help!
Am I trying to bite off more than I can chew?
JohnCl
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