All Forum Posts by: De Rasche

Explore converting to a 401k solo if it is an option and buy with your account.  

Do the math to see all your options,

but no penalty that way for early withdrawal.

No usable cash flow either as stays in 401 k solo.

Again, this forum is great for brainstorming, then talk with a cpa you are good with.

Just as a general rule for our area, 

where jobs are being created, highways/roads, new schools, rail intermodal, and housing starts are happening is a good place to invest around.

My 2cents worth.

A lumber mill employee this month said they are doing 20% pre covid production locally and making 4 times the profit.

They turn away logging trucks as this is working for them.  We have millions of pine trees locally and no mills to buy and if they do, pre covid rices to land owner.   Middle man making a killing.

Spoke with a lumber yard owner yesterday and he said prices may level off, but he is selling everything on racks, why would he drop down?

Capitalism is at work and 4 new lumber mills opening near us, but to get in on exisitng prices is their model.

Selfishly, we have 600 acres of mature pines and the truck driver is making more per truck load load than we are.

So we are exploring overseas buyers and all the logistical headache that comes with that.

Just a few thoughts tll the experts on this way in, 

as we personally will help them get a property, but not with us.

Have a written plan that includes timelines on when cash flows and how.

Good agreements signed prepared by an experinced source.

Exit strategies and how in worst case scenarios an investor can cash out.

Be prepared to have an awkward Thanksgiving/ChristMas depending on the market trends.

When we search for land for investors we use a filter.  One of the boxes in that filter asks if you can divide the land? hopefully because the road frontage makes that possible without us financing an interior road.

We explain if you buy a pie from the store and cut it into pieces and sell the pieces at a restaurant, you are likely to make a profit.  Same thing with land.  Smaller tracts and thus lower total price increases your buyer pool.  Smaller tracts get more per acre.  When buying a lot or buying acreage is the thinking on pricing.

Sounds like your realtor is experienced here.

I would suggest you tenatively mark out the splits you want.  List them as selling individual parcels with an option to buy additional acreage.  Wait on the survey until a contract as buyers may want to combine tracts and you wasted money surveying.  You will have multiple closing costs this way, but our closer gives a rate as one title search, due dilligence, etc. will be basically same for all tracts.  You can ask buyers to use your closing office to negotiate a better rate.

If one tract is preferable, you might list it last and for more per acre as folks tend to get the good ones and you are left with the hard to sell land.

Please post a drawing and suggested splits as I appreciate learning from others ideas.

You get paid a commission then it is income to you.  If you then give commission to her, you still owe taxes so hoping you are meaning not charging any commission. 

You still will need to put on the listing you are related and on a contract disclose that, but check with your state rules.  No problem if you do.  

Do the comps for her as you would anyone else or 

Mom can interview other agents along with you, as they will give what they will list for.  Then she has confirmation from others and good for you to interview to get ready for the next one. 

Retirement homes, assisted living and nursing are much different regulations.  Some rules are federal.  Please find a local home and talk with folks who have done it recently.  We looked into a nursing home on our land and after meeting with a local home changed directions sharply for our first rodeo.

i showed a property today to an investor that was $790,000.  Looked at the property few years back for about $400,000 and 10 years ago for $250,000.  If it is in a good spot, with jobs and safe, and it fits an exit strategy, best not to wait till a perfect time.

Quentin,

You sound like a very gifted student.  

Generally, keep your goal in sight and choose paths that get you there and avoid decisions that derail that goal.  In your youth you can overcome most detours, so your are postioned to succeed with either choice.  

Keep a filter with your goals in line to guide your decisions and move forward.

one option we have done lately, as we are risk averse, is get a plan and then sell the land and plan.

We market ag. land and so much per acre pricw is limited, then we had a lidar and lots platted and boom it made a vision more maketable.  Just by putting the lots on paper made it x factor more profitable as a prer cent of the planet has to see the potential, not just hear about it.