All Forum Posts by: Bear Geiger

The above comments are good input, but there some banks that will do construction loans based on the merits of the project (as constructed value) rather than your income. you will need to write a formal proposal (but i assume you did that for your previous loan).   

thanks to @Dave Foster @Bill Exeter and everyone for the great dialog 

Hi @Bill Exeter, thank you for your response. You said "Those taxpayers/investors that buy with the intent to build, retrofit, rehab, etc., and then sell are not holding for investment but rather holding for sale as inventory and will not qualify for 1031 Exchange treatment."   This raises a question. How are all these flipper / rehabbers continuing to roll all their profits into 1031's and brag about paying no taxes???  Something seems off here.  And by the way, every real estate investor is looking to sell and turn a profit.  I think we are talking about time.   I think that is what the 12 month requirement is all about. 

I am currently working in development of raw land. In short, we by a large piece of land, make improvements, split it into smaller tracks and sell them. At one time I was told that even if I hold this property for over 12 months it was still not eligible for a 1031 exchange. Some reasons I heard were that we were not allowed to make improvements or that we couldn’t "build inventory (whatever that means).

Then I realized that house flippers do this all the time. They buy a house, renovate it to add value, hold it for 12 months then sell it. In some cases they even split large houses into smaller units.

I would like to know if anyone has ever done a 1031 on improved land.

Hi @Sunny Sia.  Welcome to BiggerPockets! It seems that you have many unanswered questions and very little due diligence (DD) time left.  I would suggest if you are really serious about moving forward that you put up some additional money to extend the DD time.  As for the survey question, that (along with soil, feasibility, and more) are part of your DD costs.  If you don't have the funds for that, I am not sure how you expect to develop this property.  There are scenarios where a buyer/developer may give the seller a portion of the profits on the deal if they help with the funding.  This will of course take some time to structure and you will need trusted and knowledgeable advisors to guide you.  

whats a STR?

@Chris Martin. In rural areas it is not uncommon for the listed owner to be deceased and the but the property has been left to a child with different last name. Many times the correct property owner is listed but there is no address (no correct address) or phone number.  

Hi @Alex Stimac,  The best thing you can do is to learn all you can about business and leadership.  You do not need to go to college to be a developer.  I have a degree in electronics and now own my own development company.  You can probably find a good mentor, read books & watch you tube to learn all you need to know.  Just get started.  Start small, start simple, but START.  Feel free to contact me privately.   

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Hi @Jeff Smith.  We are a land development company in the Raleigh area. please send me a PM to let me know some details. How much land, what are you looking to do, county name & Par ID numbers, ect.