Posted by ray@lcorn on January 20, 2000 at 01:27:15:
You certainly have a good bit to work with. Trading equities is often treated a little differently than any other deal, so it pays to move slowly and understand all the ramifications. While your “down payment” of $50-$60T is a little short for a typical purchase, the 1031 aspect can bring out the liberal in lenders. You may want to explore some possibilities with a mortgage broker before going too much further. It would help to know the type of property we’re talking about. That could have a bearing on specific alternatives.
You will also want to locate a “Qualified Intermediary” to handle the 1031. You can use an attorney as well, but be sure to confirm he has prior experience. You don’t want to pay for his education. be sure to use the appropriate language in your contracts on both transactions.
As to the reluctance of the seller to take back any financing, have you found out whether he has to have all the funds in cash? Is there something else you could trade? A note? A car? Another piece of land perhaps? Is there any assumable financing? Are there ANY terms under which the seller would finance even for a short while? What other assets do you have?
Another alternative may be to structure a deal with the seller by creating a note and selling it at closing. There are several folks here that are very knowledgeable about the note industry, and this could certainly be an optional way to obtain the property you want. Click on the banner ads above.
Read Terry Vaughan’s “Sixty Second Real Estate Course” in the Articles section of this site. That will give you some ideas about different ways to structure a deal. Address the seller’s problem, and solve it! As Terry says, find a way to get everyone their equity so they can go away!
That’s about as far as I can go without more details.