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Updated about 6 years ago on . Most recent reply

If You Had A Million Dollars (on "paper flip), what would you do?
Remember that late 80s/early 90s song? I'm guessing the Barenaked Ladies meant "tax free" million. So, if you pay for an entitlement phase of a development (apartments, townhouses, single-family homes) and then you have the opportunity to sell the approved land to large syndicator/developer and cash out $1M (taxed as ordinary income?), else stay in deal as part of General Partnership/Sponsor team...am wondering....
a) how much is that normally taxed? (added to W2 or net business income?)
b) if you own 50% at end of land permitting stage, what is a good percentage of ownership to ask for in a long-term syndication? (I can't find my Gene Trowbridge Syndication book at the moment)
c) any other good strategies to recoup entitlement funds, but still generate income? (i.e. maybe sell off one of the three components, but stay in the rest?)