Here’s how I helped a client buy and sell a home at the same time.
Today, I’ll be discussing a case study on how an alternative lending solution can assist in navigating simultaneous buying and selling.
Recently, I connected with a homeowner who owns their property outright and wishes to sell it while relocating to another province and purchasing a new property. The homeowner is retired and no longer has a declared income, making it challenging for them to qualify for a new mortgage. However, since their property is mortgage-free, they could potentially sell it and use the proceeds to purchase the next property all cash.
Unfortunately, the current state of the property prevents it from being sold at its full value. This leaves the homeowner in a predicament: how can they buy a new property without selling their current one, or how can they sell their current property after buying a new one? To address this, we devised a creative solution.
I was able to secure an alternative lending solution that would lend against the value of the homeowner’s property. The homeowner will be able to withdraw that money and add it to the savings she already has, enabling her to purchase the next property. Once she acquires the new property, she will move out, clean the existing building, and then we will be able to list that property on the market and sell it for the highest possible price after it has been cleaned out.
While this approach incurs some interest costs, the alternative would be accepting a significantly reduced selling price for the property in its current condition. By paying a small amount of interest to access the property’s value before buying, the homeowner becomes an all-cash buyer and gains significant negotiation power. Subsequently, they can sell their house after the purchase, maximizing their net proceeds.
It’s essential to understand that each situation is unique, and not everyone follows the same process. If you require assistance with your specific buy-sell scenario, call or email me. I’m always happy to help.