S.E.C. Real Estate Observer

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Editor’s Note: This article was first published in the July 1973 issue of the Real Estate News Observer.

An interesting technique to start a multiple exchange is often over-looked, and many transactions that “could have been” never got off the ground.

I can best explain the technique by referring to a personal experience, a “double in lieu of” and happy conclusion. The important thing is to know the technique and put it to work.

An attorney sent three sisters to me with regard to their inheritance of an old free and clear house on an R-3 lot. Although the house was the birthplace of all three sisters, and they had a sentimental attachment to it, the house was old and most of the value was in the lot. While they wanted to dispose of the property and divide the inheritance, they were not inclined to subordinate or exchange for other improved property, or carry back on their property (or any other).

A break came in a package from Exchangor, Charles C. — an identical equity on a free and clear house in Portland, Oregon, which would qualify for FHA. His client wanted income property in Southern California.

The technique started with the offer of my clients’ property to Mr. C’s client based upon a double “in lieu of.” His client would have Southern California property he could exchange for income property. My clients would be emotionally detached from the property they were to take on in an “in lieu of” basis.

At a marketing session soon there-after, Jim Misko became a taker for the Oregon house, with paper, and some of the cash from the crank.

Now—how to handle my clients who had previously rejected paper? Each wanted to go her own way so each of the three accepted notes secured by the same trust deed. It was no problem to find five units in Long Beach for Mr. C’s client and exchange them for the R-3 lot with the old home. There were many takers for the R-3 lot.

Mission accomplished! The technique was two “in lieu ofs” that ended in four transactions.

Yvonne Nasch, S.E.C., was one of the most treasured members of the Society of Exchange Counselor. She was the 1979 Counselor of the Year. An award was created in her honor, to recognize the S.E.C. Member who completes the most transactions with other S.E.C. Members; and it is awarded annually in her memory. Yvonne had the distinct honor of being the first woman in the United States to hold the S.E.C. and CCIM designations; she also held the RECI and GRI designations. Yvonne served in many capacities as a volunteer for the various organizations she belonged to, as well as excelling in her private practice as a developer, exchangor, investor, and speaker.