To Sell or not To

5 Replies

I need you opinion on this.   I own a once acre in Davie, FL.   A buyer is offering me 150K for it.  I think the property is and will definitely be worth more.   They are expanding the hi way already because all around they are building building.  

Now my dilemma,  A property does not bring income, it is a pure equity play right now.  I could use that money on a 1031 and buy something to make it generate income.  Or I can sit on it and "maybe" sell it in a few years for more than 150.  

Opinions please =)

i'd personally take the $150k now and turn it in to $300k or more. Then it will snowball and in that couple of years you waited you could have made over $1 million. 
Choice is up to you !

Originally posted by @Ali Brooks :

i'd personally take the $150k now and turn it in to $300k or more. Then it will snowball and in that couple of years you waited you could have made over $1 million. 
Choice is up to you !

 I am leaning towards selling =) 

I am still new when it comes to investing in real state.  I know the potential is there.  But have not been able to double my money so fast.  

True true - there are deals out there you just look for the hidden ones that you have dig deeper to find. Deaths, divorce, moving, retiring, and money troubles are where I have found some amazing deals.

If the area around that land is developing, then you are right, it will probably appreciate and if you hold for the long term, then you will get a lot more out of it than if you sell it now.

However, if you think about this from a Net Present Value perspective, having your money sit there in the future isn't doing anything for you now. Whereas you could use the money and start investing it now, which could lead to potentially exponential growth (a favorite term of Josh and Brandon). You also don't know what inflation will be like in the future.

If you are doing a 1031 exchange, remember you have 45 days to identify a new property and 180 days to close on it.

Mike Huang I agree. OP should do a NPV calculation and determine optimal holding period. This can then be compared to an income producing property NPV and a better decision can be made.

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