Does this $4M offer on 30 acres look off? 7 mos Due Diligence
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Realtor · OH · Member since 2026 · 122 posts · 77 votes
6moQuote from @Ericka G.:
TLDR: Is $5k earnest money on a $4M offer (30 acres with electric but no sewer) and 7 mos due diligence ridiculous or standard for land offers? What is the standard for EM and due diligence on land deals?
Dad has 30 acres of 100+ year old family land in what was the "country" and has now become an elite suburb. It has an old farm house with electricity and a well but no public sewer line connection yet. He got an offer for $4M from a non profit seeking to preserve historic battlefields (they purchased another, simillar nearby parcel for $9M) but they are only offering $5k of earnest money and requesting 7 months of due diligence. These terms seem ridiculous to me but I know nothing about land deals and neither does anyone else in our orbit.
He had another offer from a developer that with a long due diligence that fell apart b/c of some local bureacracy trying to halt further developments until more roads were built.
Curious what is the norm for earnest money and due diligence on land deals?
Thanks for any input!
In the world of institutional land acquisition and non-profit conservation, a seven-month due diligence period is actually standard because the buyer is performing deep-dive environmental assessments and securing capital, but the $5,000 earnest money is a "soft" play that gives them a virtually free option to tie up a $4M asset with zero skin in the game. To protect your family's equity, you should push for a higher deposit—ideally closer to 1%—and negotiate a "go-hard" date where that money becomes non-refundable after 60 or 90 days to ensure they aren't just using your dad's land to test their fundraising capabilities. You should also mandate that all surveys and reports become your father’s property if they walk away, and given that a nearby parcel went for $9M, make sure you aren't leaving money on the table just because this buyer's mission sounds noble; at this price point, they need to pay for the right to keep this property off the market. I hope that helps.
25 Replies
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes6mo
Its all what the 2 parties agree to . Your best option is to consult an attorney
- Realtor · OH · Member since 2026 · 122 posts · 77 votes6mo
Quote from @Ericka G.:
TLDR: Is $5k earnest money on a $4M offer (30 acres with electric but no sewer) and 7 mos due diligence ridiculous or standard for land offers? What is the standard for EM and due diligence on land deals?
Dad has 30 acres of 100+ year old family land in what was the "country" and has now become an elite suburb. It has an old farm house with electricity and a well but no public sewer line connection yet. He got an offer for $4M from a non profit seeking to preserve historic battlefields (they purchased another, simillar nearby parcel for $9M) but they are only offering $5k of earnest money and requesting 7 months of due diligence. These terms seem ridiculous to me but I know nothing about land deals and neither does anyone else in our orbit.
He had another offer from a developer that with a long due diligence that fell apart b/c of some local bureacracy trying to halt further developments until more roads were built.
Curious what is the norm for earnest money and due diligence on land deals?
Thanks for any input!
In the world of institutional land acquisition and non-profit conservation, a seven-month due diligence period is actually standard because the buyer is performing deep-dive environmental assessments and securing capital, but the $5,000 earnest money is a "soft" play that gives them a virtually free option to tie up a $4M asset with zero skin in the game. To protect your family's equity, you should push for a higher deposit—ideally closer to 1%—and negotiate a "go-hard" date where that money becomes non-refundable after 60 or 90 days to ensure they aren't just using your dad's land to test their fundraising capabilities. You should also mandate that all surveys and reports become your father’s property if they walk away, and given that a nearby parcel went for $9M, make sure you aren't leaving money on the table just because this buyer's mission sounds noble; at this price point, they need to pay for the right to keep this property off the market. I hope that helps. is he actively tying to sell? If so the 7 months costs him time and opportunities if not actual money. I’d want the 1% ($40k) with 1/2 going hard in 2-3 months.
If he’s not really trying to sell then it costs nothing to go under contract but I’d make nearly identical counter. $40k with 1/2 going hard in 2-3 months or the $5k is option money. They have 7 months to close for another $4m or lose their $5k. This is only because it’s free money if he wasn’t looking to sell and won’t miss out on other offers.
He could offer to finance it at 6-7% with 25% down to spread out the massive tax hit and provide soli monthly income.
Quote from @Bill B.:
is he actively tying to sell? If so the 7 months costs him time and opportunities if not actual money. I’d want the 1% ($40k) with 1/2 going hard in 2-3 months.
If he’s not really trying to sell then it costs nothing to go under contract but I’d make nearly identical counter. $40k with 1/2 going hard in 2-3 months or the $5k is option money. They have 7 months to close for another $4m or lose their $5k. This is only because it’s free money if he wasn’t looking to sell and won’t miss out on other offers.
He could offer to finance it at 6-7% with 25% down to spread out the massive tax hit and provide soli monthly income.
He is actively trying to sell but also not super eager b/c property has a lot of emotional value to him. I will share this feedback with him, thank you.
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes6mo
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
7e investments53 ReviewsQuote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
I thought the $5k was crazy too. Will let my dad know. Thanks for the input.
- 6moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
I have been down this road on a property I owned that the Metro area council wanted to buy to protect a right of way and open space it was and is a very nice site.. Bottom line they took forever put up small amount of money and walked at the end.. never again. I think they just shot gun offers and see whats going to stick. we ended up dividing it ourselves and put lux housing on it. But these do come together sometimes .. if the seller is not in a hurry and wants to give them the time no harm in that but just know the chance of closing because they cant get funding or some other thing comes up is high.
On land deals depending on utls etc zoning etc EM deposits can be all over the map. And it really does not matter how much it is if its fully refundable during the due diligence period it could be a dollar or 100k makes no difference they walk at the end they get their dough back. Now if you can get NON refundable and released to seller EM that is what you try for as a seller. And on highly valuable develop-able property that is the norm.what I would do though or suggest is that in your contract the buyer is to hand over all due diligence materials they performed or paid for at no cost to your dad. Many times this is 10 20 30k in prelim work.. And if you dont ask for it up front and they dont close and now you want them to share it with you the savvy buyer will want you to pay for it.. so negotiate that up front its your for free
This is how I tie up dirt and get lower EM by telling my sellers hey I am going to spend 50k trying to figure this out and if I dont close you are entitled to all the work product I paid for at no cost to you.. Sellers can rationalize that. and of course the work product is not worth anything to me unless I can sell it to a new buyer which can work very occasionally
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
This is great insight. Will definitely advise him to ask for any due diligence matertials and a larger, non-refundable (after a certain point) EM sum. It sucks b/c he gets his hopes up each time there is an offer and so often things don't work out. His lawyer and realtor seem borderline clueless but there aren't a ton of professional options in the area apparently.
Thanks so much for your input.
I have been down this road on a property I owned that the Metro area council wanted to buy to protect a right of way and open space it was and is a very nice site.. Bottom line they took forever put up small amount of money and walked at the end.. never again. I think they just shot gun offers and see whats going to stick. we ended up dividing it ourselves and put lux housing on it. But these do come together sometimes .. if the seller is not in a hurry and wants to give them the time no harm in that but just know the chance of closing because they cant get funding or some other thing comes up is high.
On land deals depending on utls etc zoning etc EM deposits can be all over the map. And it really does not matter how much it is if its fully refundable during the due diligence period it could be a dollar or 100k makes no difference they walk at the end they get their dough back. Now if you can get NON refundable and released to seller EM that is what you try for as a seller. And on highly valuable develop-able property that is the norm.what I would do though or suggest is that in your contract the buyer is to hand over all due diligence materials they performed or paid for at no cost to your dad. Many times this is 10 20 30k in prelim work.. And if you dont ask for it up front and they dont close and now you want them to share it with you the savvy buyer will want you to pay for it.. so negotiate that up front its your for free
This is how I tie up dirt and get lower EM by telling my sellers hey I am going to spend 50k trying to figure this out and if I dont close you are entitled to all the work product I paid for at no cost to you.. Sellers can rationalize that. and of course the work product is not worth anything to me unless I can sell it to a new buyer which can work very occasionally
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
I have been down this road on a property I owned that the Metro area council wanted to buy to protect a right of way and open space it was and is a very nice site.. Bottom line they took forever put up small amount of money and walked at the end.. never again. I think they just shot gun offers and see whats going to stick. we ended up dividing it ourselves and put lux housing on it. But these do come together sometimes .. if the seller is not in a hurry and wants to give them the time no harm in that but just know the chance of closing because they cant get funding or some other thing comes up is high.
On land deals depending on utls etc zoning etc EM deposits can be all over the map. And it really does not matter how much it is if its fully refundable during the due diligence period it could be a dollar or 100k makes no difference they walk at the end they get their dough back. Now if you can get NON refundable and released to seller EM that is what you try for as a seller. And on highly valuable develop-able property that is the norm.what I would do though or suggest is that in your contract the buyer is to hand over all due diligence materials they performed or paid for at no cost to your dad. Many times this is 10 20 30k in prelim work.. And if you dont ask for it up front and they dont close and now you want them to share it with you the savvy buyer will want you to pay for it.. so negotiate that up front its your for free
This is how I tie up dirt and get lower EM by telling my sellers hey I am going to spend 50k trying to figure this out and if I dont close you are entitled to all the work product I paid for at no cost to you.. Sellers can rationalize that. and of course the work product is not worth anything to me unless I can sell it to a new buyer which can work very occasionally
This is great insight. Will definitely advise him to ask for any due diligence matertials and a larger, non-refundable (after a certain point) EM sum. It sucks b/c he gets his hopes up each time there is an offer and so often things don't work out. His lawyer and realtor seem borderline clueless but there aren't a ton of professional options in the area apparently.
Thanks so much for your input.
- 6moJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Ericka G.:
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
I have been down this road on a property I owned that the Metro area council wanted to buy to protect a right of way and open space it was and is a very nice site.. Bottom line they took forever put up small amount of money and walked at the end.. never again. I think they just shot gun offers and see whats going to stick. we ended up dividing it ourselves and put lux housing on it. But these do come together sometimes .. if the seller is not in a hurry and wants to give them the time no harm in that but just know the chance of closing because they cant get funding or some other thing comes up is high.
On land deals depending on utls etc zoning etc EM deposits can be all over the map. And it really does not matter how much it is if its fully refundable during the due diligence period it could be a dollar or 100k makes no difference they walk at the end they get their dough back. Now if you can get NON refundable and released to seller EM that is what you try for as a seller. And on highly valuable develop-able property that is the norm.what I would do though or suggest is that in your contract the buyer is to hand over all due diligence materials they performed or paid for at no cost to your dad. Many times this is 10 20 30k in prelim work.. And if you dont ask for it up front and they dont close and now you want them to share it with you the savvy buyer will want you to pay for it.. so negotiate that up front its your for free
This is how I tie up dirt and get lower EM by telling my sellers hey I am going to spend 50k trying to figure this out and if I dont close you are entitled to all the work product I paid for at no cost to you.. Sellers can rationalize that. and of course the work product is not worth anything to me unless I can sell it to a new buyer which can work very occasionally
This is great insight. Will definitely advise him to ask for any due diligence matertials and a larger, non-refundable (after a certain point) EM sum. It sucks b/c he gets his hopes up each time there is an offer and so often things don't work out. His lawyer and realtor seem borderline clueless but there aren't a ton of professional options in the area apparently.
Thanks so much for your input.
if multiple developers have taken a run at it and passed then its over priced or got more hair on it than a developer wants to tackle at that price point
Quote from @Jay Hinrichs:
Quote from @Ericka G.:
Quote from @Jay Hinrichs:
Quote from @Chris Seveney:
There will be a lengthy due diligence on land. Many times we see it being six months, with a six-month extension. A $5,000 deposit is a joke. I would not accept that. I would require them a minimum of $100,000. If they request another extension after six months, it would be a $500,000 extension at that time to confirm they are serious
I have been down this road on a property I owned that the Metro area council wanted to buy to protect a right of way and open space it was and is a very nice site.. Bottom line they took forever put up small amount of money and walked at the end.. never again. I think they just shot gun offers and see whats going to stick. we ended up dividing it ourselves and put lux housing on it. But these do come together sometimes .. if the seller is not in a hurry and wants to give them the time no harm in that but just know the chance of closing because they cant get funding or some other thing comes up is high.
On land deals depending on utls etc zoning etc EM deposits can be all over the map. And it really does not matter how much it is if its fully refundable during the due diligence period it could be a dollar or 100k makes no difference they walk at the end they get their dough back. Now if you can get NON refundable and released to seller EM that is what you try for as a seller. And on highly valuable develop-able property that is the norm.what I would do though or suggest is that in your contract the buyer is to hand over all due diligence materials they performed or paid for at no cost to your dad. Many times this is 10 20 30k in prelim work.. And if you dont ask for it up front and they dont close and now you want them to share it with you the savvy buyer will want you to pay for it.. so negotiate that up front its your for free
This is how I tie up dirt and get lower EM by telling my sellers hey I am going to spend 50k trying to figure this out and if I dont close you are entitled to all the work product I paid for at no cost to you.. Sellers can rationalize that. and of course the work product is not worth anything to me unless I can sell it to a new buyer which can work very occasionally
This is great insight. Will definitely advise him to ask for any due diligence matertials and a larger, non-refundable (after a certain point) EM sum. It sucks b/c he gets his hopes up each time there is an offer and so often things don't work out. His lawyer and realtor seem borderline clueless but there aren't a ton of professional options in the area apparently.
Thanks so much for your input.
if multiple developers have taken a run at it and passed then its over priced or got more hair on it than a developer wants to tackle at that price point
Developer passed because of lack of sewer and the inability to get county approval until a new road is built (starts in 2027). Maybe they will circle back once that road is built if this deal falls through...we don't have any desperation to sell so it's a waiting game. Dad definitely likes the idea of the land being preserved rather than developed though.
They sent all of their research and our family land was the site of a major union victory in the south at a pivotal point in the civil war. Fingers crossed that they can come to a fair agreement.
- Real Estate Consultant · Westfield, IN · Member since 2008 · 101 posts · 22 votes6mo
All land deals are not created equal and I can answer some of your questions but your information leads to questions of my own.
The biggest question I have; is this land the site of a historic battlefield?
$5k earnest money is very weak for any offer and depending on the buyers intention for the land should be much more. If the buyer is truly a non-profit looking to preserve historic battlefields then I get the lowball earnest money offer. If there is no public knowledge that this land is a battlefield then they will get a cheap 7 month period to determine if it is. They might already know that if this is their life’s mission. Their offer will give them an out to terminate if it is not a battlefield and they will request their EM back if it is not a hard money deposit.
Next is the $4M purchase price. I have no idea what the value of battlefield land is worth but for development it could be worth more. You mentioned a $9M parcel they bought but I don’t know the size of that one to compare.
Not all non-profits are not created equal and they may have limited funds. (Although paying $9M for another parcel doesn’t seem limited) Therefore they are trying to get a cheap look and the land with minimal purchase price.
You mentioned this land is now in an elite suburb. If this is the case then the land could be worth more than $4M to a developer. However, being a farm, I’m guessing it is zoned AG-Agriculture and a developer will have to rezone it to build anything on it. A developer offer will be a higher EM deposit but it might be a longer due diligence period to make sure they can get utilities. Then after the due diligence it might include a city approval period which will give them time to rezone and obtain construction permits. Usually they write in 2-4 extension periods too. Each extension will be an additional EM deposit, some of them hard money. Which means it is applicable to the purchase price but it is not refundable if they terminate the contract.
I work for developer and my role is to study every site we want to develop and provide feedback and a risk assessment. The suggestions posted here by others to talk to an attorney or ask for hard money deposits are all great but this post can go a hundred different directions based on location, location, location and what you want for the land.
- Real Estate Consultant · Westfield, IN · Member since 2008 · 101 posts · 22 votes6mo
All land deals are not created equal and I can answer some of your questions but your information leads to questions of my own.
The biggest question I have; is this land the site of a historic battlefield?
$5k earnest money is very weak for any offer and depending on the buyers intention for the land should be much more. If the buyer is truly a non-profit looking to preserve historic battlefields then I get the lowball earnest money offer. If there is no public knowledge that this land is a battlefield then they will get a cheap 7 month period to determine if it is. They might already know that if this is their life’s mission. Their offer will give them an out to terminate if it is not a battlefield and they will request their EM back if it is not a hard money deposit.
Next is the $4M purchase price. I have no idea what the value of battlefield land is worth but for development it could be worth more. You mentioned a $9M parcel they bought but I don’t know the size of that one to compare.
Not all non-profits are not created equal and they may have limited funds. (Although paying $9M for another parcel doesn’t seem limited) Therefore they are trying to get a cheap look and the land with minimal purchase price.
You mentioned this land is now in an elite suburb. If this is the case then the land could be worth more than $4M to a developer. However, being a farm, I’m guessing it is zoned AG-Agriculture and a developer will have to rezone it to build anything on it. A developer offer will be a higher EM deposit but it might be a longer due diligence period to make sure they can get utilities. Then after the due diligence it might include a city approval period which will give them time to rezone and obtain construction permits. Usually they write in 2-4 extension periods too. Each extension will be an additional EM deposit, some of them hard money. Which means it is applicable to the purchase price but it is not refundable if they terminate the contract.
I work for developer and my role is to study every site we want to develop and provide feedback and a risk assessment. The suggestions posted here by others to talk to an attorney or ask for hard money deposits are all great but this post can go a hundred different directions based on location, location, location and what you want for the land.
Quote from @Corey Williams:
All land deals are not created equal and I can answer some of your questions but your information leads to questions of my own.
The biggest question I have; is this land the site of a historic battlefield?
$5k earnest money is very weak for any offer and depending on the buyers intention for the land should be much more. If the buyer is truly a non-profit looking to preserve historic battlefields then I get the lowball earnest money offer. If there is no public knowledge that this land is a battlefield then they will get a cheap 7 month period to determine if it is. They might already know that if this is their life’s mission. Their offer will give them an out to terminate if it is not a battlefield and they will request their EM back if it is not a hard money deposit.
Next is the $4M purchase price. I have no idea what the value of battlefield land is worth but for development it could be worth more. You mentioned a $9M parcel they bought but I don’t know the size of that one to compare.
Not all non-profits are not created equal and they may have limited funds. (Although paying $9M for another parcel doesn’t seem limited) Therefore they are trying to get a cheap look and the land with minimal purchase price.
You mentioned this land is now in an elite suburb. If this is the case then the land could be worth more than $4M to a developer. However, being a farm, I’m guessing it is zoned AG-Agriculture and a developer will have to rezone it to build anything on it. A developer offer will be a higher EM deposit but it might be a longer due diligence period to make sure they can get utilities. Then after the due diligence it might include a city approval period which will give them time to rezone and obtain construction permits. Usually they write in 2-4 extension periods too. Each extension will be an additional EM deposit, some of them hard money. Which means it is applicable to the purchase price but it is not refundable if they terminate the contract.
I work for developer and my role is to study every site we want to develop and provide feedback and a risk assessment. The suggestions posted here by others to talk to an attorney or ask for hard money deposits are all great but this post can go a hundred different directions based on location, location, location and what you want for the land.
These are good points.
Battlefield: Dad's family has been in that area for many generations and hadn't heard of any battles on that land but it is bordered by several civil war monuments and other battle fields so it is definitely possible. Perhaps we can ask that the buyer share the information they have about the site as part of the contract?
Zoning: I'm pretty sure that the property has residential and ag zoning b/c everything around it is residential and it hasn't been a working farm in over 60 years...we just call it "the farm" b/c that is how our family still thinks of it. It's basically now just 30 acres in the middle of an affluent suburb that still has an old farmhouse and falling down barn on it.
Developer: He had a previous offer from a developer that fell thru b/c the city/county is pausing housing developments until a new road is completed to ease congestion. The road is approved and on the schedule for 2027 I believe?
Headed to my parents this weekend for Mother's Day so I will dig into all of this more when I'm able to sit down with my dad.
Thanks for your input.
- 6moPrashanth MahakaliPro MemberArchitect · Chicago, IL · Member since 2015 · 93 posts · 130 votes
How cool would it be if YOU actually did the development. It is going to be daunting at first but imagine if you can get the land shovel ready!
Quote from @Prashanth Mahakali:
How cool would it be if YOU actually did the development. It is going to be daunting at first but imagine if you can get the land shovel ready!
Yes! I would love it if we could develop it ourselves. We don't have the expertise or connections to do so, but it is still worth exploring again...maybe find a partner on it who has that background. Thanks for your input.
- Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes6mo
After reading posts from others , it almost sounds like the non profit is trying to wholesale the property , with a $5000 gamble
- 6moHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
OP agree with everyone above but given your question I’m going to give you a next level spin the attorneys should be coaching you on. I’m not an attorney but have gone thru setting up a trust and the thought process.
1. As to the historic battlefield. Make an agreement they can do an historical survey for free subject to you getting the results. Don’t tie up the land. Sounds like you can get high dollars either way.
2. Sorry to go down this route. Don’t answer any of my questions. talk with a Trust Estate attorney, not a regular attorney. How old is your father, how is his physical and mental health, how many heirs, have legal power of attorney subject to death or mental, set up trust so no probate, subject to your fathers objectives passing wealth/level of living/covering extended care etc talk with estate attorney.
3. If he wants to really enjoy life now sell it and pay taxes.
4. If he wants to pass on wealth, “Trusts” one of the heirs, sell the property to them at “Market” rate $4mm to $9mm get appraisal. “Low” interest only terms to cover his living costs. In the trust give the loan to whoever buys the property so it gets forgiven. Or take term life insurance out.
5. Extended care. I’ll use $12,000 per month. If you want the state to pay he has to use up all of his wealth!!!!. Any wealth transfer he did in the last 5 years they will go after so needs to be done well ahead of time.
You don’t know me. Don't trust anything I said.
My point is talk with an “Estate” Attorney and a tax planning specialist. Might cost you $8 to $15k. Don’t google or AI it, to many angles.
Quote from @Henry Clark:
OP agree with everyone above but given your question I’m going to give you a next level spin the attorneys should be coaching you on. I’m not an attorney but have gone thru setting up a trust and the thought process.
1. As to the historic battlefield. Make an agreement they can do an historical survey for free subject to you getting the results. Don’t tie up the land. Sounds like you can get high dollars either way.
2. Sorry to go down this route. Don’t answer any of my questions. talk with a Trust Estate attorney, not a regular attorney. How old is your father, how is his physical and mental health, how many heirs, have legal power of attorney subject to death or mental, set up trust so no probate, subject to your fathers objectives passing wealth/level of living/covering extended care etc talk with estate attorney.
3. If he wants to really enjoy life now sell it and pay taxes.
4. If he wants to pass on wealth, “Trusts” one of the heirs, sell the property to them at “Market” rate $4mm to $9mm get appraisal. “Low” interest only terms to cover his living costs. In the trust give the loan to whoever buys the property so it gets forgiven. Or take term life insurance out.
5. Extended care. I’ll use $12,000 per month. If you want the state to pay he has to use up all of his wealth!!!!. Any wealth transfer he did in the last 5 years they will go after so needs to be done well ahead of time.
You don’t know me. Don't trust anything I said.
My point is talk with an “Estate” Attorney and a tax planning specialist. Might cost you $8 to $15k. Don’t google or AI it, to many angles.
Wow, lots of stuff here I hadn't thought of. I will talk through all of this with him this weekend. I like the idea of letting them do the survey for free without tying up the land. The attempt to tie it up for 7 mos with such a low EM deposit made me suspicious of wholesale...but they seem to be a legit non-profit. Who knows.
My parents do have wills and savings for LTC/elder care but you raise some good points about taxes, health, etc. He isn't the sole heir but the legal details are in order and he has been tasked with managing everything. So much to consider.
- 6moHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votesOP you noted he is not the sole heir.
Quote from @Ericka G.:
Quote from @Henry Clark:
OP agree with everyone above but given your question I’m going to give you a next level spin the attorneys should be coaching you on. I’m not an attorney but have gone thru setting up a trust and the thought process.
1. As to the historic battlefield. Make an agreement they can do an historical survey for free subject to you getting the results. Don’t tie up the land. Sounds like you can get high dollars either way.
2. Sorry to go down this route. Don’t answer any of my questions. talk with a Trust Estate attorney, not a regular attorney. How old is your father, how is his physical and mental health, how many heirs, have legal power of attorney subject to death or mental, set up trust so no probate, subject to your fathers objectives passing wealth/level of living/covering extended care etc talk with estate attorney.
3. If he wants to really enjoy life now sell it and pay taxes.
4. If he wants to pass on wealth, “Trusts” one of the heirs, sell the property to them at “Market” rate $4mm to $9mm get appraisal. “Low” interest only terms to cover his living costs. In the trust give the loan to whoever buys the property so it gets forgiven. Or take term life insurance out.
5. Extended care. I’ll use $12,000 per month. If you want the state to pay he has to use up all of his wealth!!!!. Any wealth transfer he did in the last 5 years they will go after so needs to be done well ahead of time.
You don’t know me. Don't trust anything I said.
My point is talk with an “Estate” Attorney and a tax planning specialist. Might cost you $8 to $15k. Don’t google or AI it, to many angles.
Wow, lots of stuff here I hadn't thought of. I will talk through all of this with him this weekend. I like the idea of letting them do the survey for free without tying up the land. The attempt to tie it up for 7 mos with such a low EM deposit made me suspicious of wholesale...but they seem to be a legit non-profit. Who knows.
My parents do have wills and savings for LTC/elder care but you raise some good points about taxes, health, etc. He isn't the sole heir but the legal details are in order and he has been tasked with managing everything. So much to consider.
1. That makes this more complicated. Different life aspirations, different estate planning, different children and grandchildren aspirations, etc.
2. Wills still go thru probate. Ok if small dollar estate and only one person. If large dollar estate and multiple heirs Trusts are better. If everyone is unwilling to get a trust under their names, you might check doing a land trust.
Again talk with an Estate attorney, not
a regular attorney. Even if one of the family or a friend is an Attorney and will do for free, don’t use them. Get an Estate planning attorney. Pay the $5 to $15k fees.
- 6moHenry ClarkPro MemberDeveloper · Member since 2020 · 4k+ posts · 4k+ votes
OP. Research High Net Worth financial advisors in your area. Ask them to recommend or give you several names for Estate planning attorneys. See if they will give you or your father a free sit down consultation.
- Member since 2026 · 10 posts · 2 votes1d
Ericka, $5k on a $4M contract is an option, not a commitment. Long diligence is normal on entitled or conservation deals. Free diligence with tiny earnest is not.
If your dad wants to keep talking, counter for roughly 1% earnest with half going hard after 60 to 90 days, require all reports to stay with him if they walk, and keep the right to market or take backup offers unless they pay for exclusivity. Also price-check a developer path separately. A battlefield nonprofit and a suburban builder are not the same buyer, and the unfinished sewer line will price differently for each.
Have a land attorney redline before anyone signs.
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