[Rafael Vazquez]

Rafael Vazquez

Hi all,

I have a rental that I want to sell to my current tenants. A young couple, very nice, pay on time, have been with me for over 6 years, take good care of the property and have giving me no problems at all. They love the house and are trying very hard to buy it. Credit is not the best and they are having problems to qualify for a loan for the full amount I am asking for.

The guy paints houses and commercial properties for a living and I am in need of a paint job on my own house where I live. Is a big house and it will probably cost ~ 5-6K for a paint job.

I am thinking about bartering the paint job for a discount on the sale of the rental so that they can qualify. I have never done this type of transaction so I am wondering if someone has any experience with bartering for services in this manner.

Questions:

1. Is this even possible?

2. If so, who handles this, the title company?

3. Do I record somethig to create a lien on the rental until he finishes the paint job?

4. Anything else I should be aware of?

Any feedback will be appreciated.

Thx/Rafael

[DON WEDE]

DON WEDE

Make it simple just pay him with a check. Hold the check until you open escrow on the sale. You pay him, he pays you

[Rafael Vazquez]

Rafael Vazquez

Hi Don,

Thanks for the reply. Can you explain a little better what do you mean? Why would I pay him? I’m trying to have him paint my own residence in exchange for a discount on the sale of the rental to them.

Rafael

[DON WEDE]

DON WEDE

Rafael,
Sorry it took so long for me to get back. He is providing a service, right? You pay him for services rendered. He then takes the money he earned and uses it to purchase your house that he wants to buy.

[Rafael Vazquez]

Rafael Vazquez

Hey Don

So at closing, he gets the check for the services and turns around and uses that money towards the purchase price. Very good, now I see it. As always thank you for the feedback and explanation.

Rafael