Updated over 5 years ago on . Most recent reply
Finding a fair offer price
I have begun the search to find a mobile home park for an upcoming 1031 exchange however i am finding it difficult to land on a fair offer price.
My question is how do I o about placing value on each asset: Land, land cap, trailers if park owned. Am I even looking at this from the correct perspective?
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- Qualified Intermediary for 1031 Exchanges
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@Tatiana Hunter, It's actually a delicate dance between your accountants and theirs as well. Only land and the buildings on the land will qualify for your 1031 exchange. So you have to make sure that enough is allocated to the land/building portion to cover your 1031. But equipment has some accelerated depreciation availability. So you want as much as possible to go there as well. And meanwhile, the other side wants to minimize the goodwill portion and maximize the land/building if they're doing a 1031. And they'll want to sell the equipment at basis so there's no profit there.
I know this seems more tax and accounting than marketing but the allocations you go in with will be instrumental in maximizing operations.
- Dave Foster
