Home Buying in Carson City>Question Details

Amb, Home Buyer in Carson City, NV

Are there any exchange opportunities... we have two homes in San Diego, CA, but have relocated here. Currently

Asked by Amb, Carson City, NV Mon May 11, 2009

they are rented out. And we are not in a position to sell, but interested in an Exchange of one property for Carson Valley/City area property, we rent right now and hate to waste our money. Can give much more details on what we would be exchanging.

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What type of properties do you have in San Diego and what are you looking for in Carson City? We own property in Carson City and might be interested in an exchange.
0 votes Thank Flag Link Thu Apr 7, 2011
Though, you are not along in this situation, and many people are looking to do a strait exchange one property for another since they cannot sell it in this declined market, it is easier said then done. I am in agreement with the first answer regarding the details of the exchange, where all parties desires in property type and location would have to match. So, the question here would be: if the rents for homes in San Diego are sufficient to cover your mortgage expenses so you do not have to deep into your pocket to pay for them? Can you wait for the market to come back, and sell your homes in San Diego without loss? If yes, would you be in the position to purchase a home in Carson City area to live in instead of renting? With so many homes being offered by the bank through a Foreclosure or Short Sale process you most likely purchase a home for the monthly payment of your current rent.
To see and compare Foreclosures & Short Sale properties please go to: BonanzaTahoeProperties.com you will be amazed to see such low prices!!!

In regards to 1031 exchange, you can apply this law to any property as long as you exchange one property for the same property, whether it is an investment or a primary residence. The rule is: "like property for the like property" as an investor myself, I personally have done Eight 1031 exchanges in the last 12 years.
0 votes Thank Flag Link Tue Jun 2, 2009
Thank you for your question. If you have investment property in San Diego you can 1031 exchange it for property in the Carson City / Valley area. It can not be your primary residence.

We have many homes available for sale at reduced prices I am sure you would be able to fine a replacement property that would fit your needs. If you would like to contact me direct with more information I would be happy to help you.

Kathy@CarsonCityRealEstate.com
(775)762-8500
0 votes Thank Flag Link Mon May 11, 2009
See an accountant for the ramifications of exchanging.

I've seen a number of questions on exchanging but, frankly, haven't heard any success stories. And, really, that's not surprising. Consider: You have two homes in San Diego. First, how many people in San Diego would be interested in buying one of those homes? Each has their own criteria about number of bedrooms, number of bathrooms, maybe school district, maybe house style, and so on. Each also has a price figure in mind. If you home were priced properly and heavily marketed in San Diego, how long would it take to find one qualified purchaser who wanted your home? 60 days? 90 days? 120 days?

But now, consider: You're not trying to find a buyer in San Diego for your home. You're trying to find a buyer in Carson City, Nevada. Someone who has the same criteria regarding bedrooms, bathrooms, location, and price. I'll bet there aren't too many in Carson City. And if it would take you, let's say, 60 days of good marketing in San Diego to find someone interested in your San Diego property, how long will it take to find someone in Carson City?

Meanwhile, you need to find a suitable home in Carson City. I'm sure you've got some criteria, too, regarding number of bedrooms, number of baths, general location, and so on. So even if you found someone in Carson City interested in your San Diego property, you might well not be interested in their Carson City property.

But let's say you beat the odds and you find an acceptable home in Carson City, and those folks consider your home in San Diego acceptable. You're talking about an exchange. Fair enough. But what happens if there's a substantial difference in equity? For instance, your home in San Diego is worth $600,000, with $400,000 in equity. The home in Carson City is worth $600,000, with $100,000 in equity. If you exchange homes, you'll immediately lose $300,000 in equity. Ouch!

Meanwhile--and recognize I'm not a lawyer or an accountant--if the two of you simply exchange the properties (you deed your property to the Carson City folks, and they deed their property to you), if the mortgages remain in place both of you have just violated the lenders' due on sale clauses.

In brief, the likelihood of achieving a successful exchange seems pretty remote.

Look: If you aren't in a position to sell your San Diego properties, then you can't. But recognize that renting a home is not "wasting our money." You need a place to live. And rent provides that.

If you want to buy a property (or assume an interest in a property) in Carson City, there are plenty of ways to do that. You can lease-option a property. Or do a contract for deed. Or there's a nice technique using land trusts. Or acquire a property "subject to" (subject to the existing financing). None of these require new loans up front. At some point in the future you'd refinance/finance the property. But in the meantime you'd control the property and be building up equity.

Hope that helps.
0 votes Thank Flag Link Mon May 11, 2009
Don Tepper, Real Estate Pro in Burke, VA
MVP'08
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