I hold a mortgage on a 3 unit house in Maine. My brother holds a mortgage on a 1 br condominium in Hawaii. We desire to swap these properties. I will then assume a mortgage for the 1 br condo in Hawaii and live there and my brother will assume a mortgage for the 3 unit house in Maine and live in one of the units there. The 1br condos are selling for 400,000 in Hawaii and the 3 unit house in Maine are selling for 200,000. We desire to minimize our capital gains and out of pocket expenses as we really just desire to trade the properties plain and simple.
2007-05-19 13:02:39 · 3 answers · asked by scruffy 1 in Business & Finance ➔ Renting & Real Estate
If my assumption is correct that neither of you live in the properties, you can do a 1031 exchange on them to minimize or eliminate the capital gain either of you have to take.
You need an attorney. Lots of math is involved here.
2007-05-19 13:11:35 · answer #1 · answered by open4one 7 · 0⤊ 0⤋
You should probably be able to sign QuitClaim deeds transferring these properties to one another.
However, you should probably consult an attorney, because each state may have its own laws governing capital gains, etc.
Also, be aware that many mortgages are NOT assumable. The lenders may not allow you to assume your brother's mortgage, and vice versa. If that is your intention, you should check with each of the lenders before proceeding.
2007-05-19 13:10:43 · answer #2 · answered by Mygirlsmom 2 · 0⤊ 0⤋
I would put them in a trust so if anything were to happen you won't lose out. Please, please make a paper trail whatever you do because if you just verbally swap it will not work.
2007-05-19 13:09:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋