Help On Structuring This Deal
How can I put this deal together wihout another partner? My Associates and I can purchase 100+- ac for
$10,500/acre and sell at $18,400/ac. The only problem
is the seller wants to close in 30 days all cash and
the buyer needs 90 days feasibility and 30 more to
close. the other realtor has stated that if he can
get preliminary plat approval he might close in 60.
All advice is greatly appreciated. Thanks..
Eddie,
I would offer the Seller a "piece" of the action to delay closing. If you are making 8,000 per acre ...offer him an additional 1,500 for a total of 12,000/acre to extend the closing till the dates that gel.
The best advice I ever received is...
"Hogs get fat....Pigs get slaughtered!"
Nan Gile
Tom,
Thank you, thank you, thank you for your response. That is the clear simple answer that I was looking for. I thought maybe my accountant was missing the mark on my1031 question. If I were to sell I absolutely would want to reinvest it in another property. You said a like kind exchange. Does that mean any income producing property? Could you sell a retail space and do a 1031 to a multi-family?
Again, thanks for your response
Barbara
Zoegirl , you can do pretty much anything....you can use the money from one property to buy two....there are alot of options. The key to remember is that the replacement property(s) have to be equal or greator to in value, debt, and equity. Here is the intermediary I used. They are reasonable, reputable, and did a pretty good job with my transaction.
www.firstexchange.com
click on "exchange process" and go thru the course/overview. It should answer most of your questions. Good luck.
-Pat
my two cents......
i echo the above listing regarding being able to buy up to 400k worth of property.
go find a couple of houses in an area where rents are enough to break even or cash flow.
buy a couple of houses for 150k each, put 20k into each, (cant use 1031 funds for closing costs) and make sure they will rent for around $1300 a month.
that will work out great for you. you will have the tax deferment on the initial 40k, you will make a few dollars a month on rent, you will have long term appreciation and the annual depreciation. all for pretty much nothing out of pocket.
oh yeah, find a new cpa.
good luck, brian
Is this a new building or a conversion on an old building? Are the condo association documents already recorded?
You would need to have the area of roof you want set up as limited common elements for your exclusive use. Unless you have a largely compelling reason, a developer/builder/owner is going to be reluctant to grant this to you. Keep in mind you also will be potentially incurring a higher liability as anything you place on the roof may create a leak into the units below for which you would be held liable.
Is the roof rights the only thing you want to buy or do you want to buy an office unit as well? Also most roof antennas require at lease some non-rooftop space for equipment.
That said its usually easier to just lease the rooftop for some extended period-- say 20 years with a 20 year option to renew than to treat it as a condo.
Thanks for replying. I am purchasing an office condo, roof rights would be in addition.
This is an existing building being converted to office condos, I will be the first one. No bylaws/declaration have been drafted yet.
thanks.
I have heard of a few national companies that do these. I think one was named Tranzon.
Also, Try seaching under auctioneer.
If you are looking for Foreclosure auctions I would look for trustee sale postings in the county you are interested in or private data companies that sell this data in your county of interest.
Make lower offers based on what you believe the house to be worth. If you can successfully control the market, you might be able to rent it and extract some money from it before tearing it down and converting it to parking. Also, the house itself might be able to be sold to others and relocated. Another option is to move the house yourself to another lot rather than just tearing it down.
Maybe you could negotiate with the owner to separate the land and create another parcel that you could purchase?[ Edited by Moreloans on Date 08/24/2006 ]
You may be overlooking a real opportunity if that house is designated a landmark property because of its age ... check out the federal gov grants registry for that area and you may be surprised to find that you can obtain acquisition and rehab/conversion money (grants/low interest forgivable loans) for the property ....