All Forum Posts by: Craig Tripp

Thanks again @Ashish Acharya, that makes sense.  Detention pond is not in place now (only a requirement for future development), but it gives me a solid plan going forward. 

@Ashish Acharya

Thank you for reply, I was afraid of that but makes sense.

Do I get to assign the value to each acre (within reason)? Close to 1 acre may be needed for detention pond, can I value that less than a prime spot with more road frontage?

Thank you. I think I poorly worded the question, and should have given an example:

Have I realized a gain in this scenario?

Purchase: $275k (9 acres)

Sale: $150k (approx 3 acres)

Maintain: original note and remaining acreage

I haven’t necessarily shown a gain on the sale as I still have $125k in the overall purchase, or have I?  

I understand the short vs. long... but am confused if I even have a tax consequence?

@lance lvovsky

Thank you.  I think I poorly worded the question.  Have I realized  a gain though in this scenario?

Purchase: $275k (9 acres)

Sale: $150k (approx 3 acres)

Maintain: remaining acreage

I haven’t necessarily shown a gain on the sale as I still have $125k in the overall purchase, or have I?  

To the CPA/investor/developer community:

I am under contract for a parcel of industrial land that is 9 acres.  I want to maintain approximately 1 - 1.5 acres for building a warehouse space for my company as a long term hold.  The remaining I plan to market at 2-3 acre lots for resale.  (The property had been divided into smaller lots in the past and replatting should be no issue)

My question:  Does continuing to hold onto a portion of the land impact long term vs. short term capital gains? If I market aggressively and try to sale quick will I have short term capital gains tax as a result?  I will (or can) still maintain the original note on the 9 acres but pay down as lots are sold off.  Or could a strategy be to secure an interest only loan and not aggressively pursue the sale off until after year one?  

It may be as simple as a hold cost vs. tax consequence.  Who do I want to pay the least...the bank or the government?

I currently own a 6,000 sqft shop, that I then lease to my small business.  There are some tremendous benefits:

- payroll tax savings (rent is expensed from company and goes to my personal account with out adding FICA taxes)

- repairs, maintenance, upkeep... can sometimes be done while the guys are done early for the day or we have iffy forecasts.

- I’m at the mercy of the weather sometimes, and if I’m late or behind on the rent... I don’t penalize myself, just catch it up when I can.

- bottom line:  I couldn’t ask for a better renter than myself, and must say I also have the best landlord around.

The numbers need to work... but this is an awesome opportunity that hopefully you can take advantage of.

@Ned Carey nailed it!  I Immediately thought of “Profit First “ when I read your question @Karla Kahmeyer  

I implemented it in my small business and it makes life so easy for me.  On the RE side and implementation it doesn’t require as many accounts but the idea is to have separate “buckets” of money that are set aside and cover expenses.

@Jordan L. oops, didn’t realize it was in NC.  

I’m a foundation repairman in TX, and I never get worked up about cracks in ceilings.  Most homeowners like to point them out to me, but they don’t always indicate foundation movement.  It could mean you have a framing issue or some workmanship issue in the plaster or drywall that are starting to show up.

Focus on the following:

- The fit of doors inside the frame.  The reveal on top will tell you if one side or the other has settled.

- Diagonal cracks coming off door frames or window frames at approx 45 deg angle.

- Separation around windows from the exterior. 

- Opening of brick frieze where brick veneer meets soffit.

- Levelness of counters, trim, or finishes on inside and out. 

Studying those cues will point you in the right direction.  The good news is it’s a pier and beam, and depending on access and/or rot/termite issues those are typically cheaper to fix then slab on grade.

I agree with @Logan Russell and google a local REPUTABLE repair company and let them assess it for you

Hard to say without knowing the clearance in the crawlspace.  Low to ground could mean excavation of dirt/tunneling, difficulty in reaching all areas, and is generally just slower.  and more expensive.

Most importantly, get a 2nd and 3rd estimate and make sure your verify quality of work with past customers, friends, family....  You only want to do a job like this once, so do it right the first time.